Schwan's Co. has found a buyer in South Korea's largest food company, CJ CheilJedang, known as CJCJ, reports Minneapolis Star Tribune. The Seoul-based company will pay $1.8 billion for Minnesota-based Schwan's. Under the agreement, CJCJ will acquire an 80 percent stake in Schwan's and gain control of its businesses that serve restaurants, groceries, and other retailers. Schwan's will maintain a 20 percent stake and maintain control of company's home delivery business. It will also keep its name, its corporate office in Bloomington, Minn., and its main operations in Marshall, Minn.
When the deal closes early in 2019, Schwan's will become a unit of CJ Foods America Corp., the U.S. subsidiary of CJCJ. CJCJ, which currently has five U.S. manufacturing and distribution sites, will acquire 17 food manufacturing facilities and 10 distribution centers across the U.S through the Schwan's acquisition.
Schwan's current annual sales total approximately $3 billion. The company offers a variety of frozen and ready-made products, including Red Baron, Freschetta and Tony's pizzas, Mrs. Smith's pies, and Edwards desserts. Its foodservice business sells to schools, hospitals and other institutions. Full Story
Related: Schwan's Company Opening a Dessert Restaurant; Minnesota Companies Pop Out New Popcorn Snacks.
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