The following blog post South Korea CJ Buy Schwan’s Frozen Food for $1.84 Billion is courtesy of The Freeze Dry Meal Blog
CJ is one of the most successful food companies in South Korea. In fact, it is known as food giant that deals in healthy frozen foods. CJ does have a very big market, as of this writing. In fact, the company not only does business in South Korea but also has a branch in the United States.
According to a post published on Reuter, the company has acquired Schwan’s, one of the biggest frozen food companies in the United States.
South Korean food giant CJ buy U.S. frozen food company for $1.84 billion
South Korea’s CJ CheilJedang Corp (097950.KS) said on Thursday it bought privately held U.S. frozen foods firm Schwan’s Co for $1.84 billion, the South Korean food-to-entertainment conglomerate’s biggest-ever acquisition.
The acquisition builds on CJ’s push into the United States. The firm in August bought Ohio-based Kahiki Foods, a supplier of frozen Asian meals to stores including Walmart Inc (WMT.N).
South Korea CJ acquired the company by paying $1.84 Billion in cash as per the agreement of the business transaction.
According to Brittany Shoot from Fortune, South Korea CJ’s acquisition of the leading frozen pizza company will expand CJ’s business beyond South Korea.
Schwan's Is Selling a Billion-Dollar Stake to South Korea's Largest Food Manufacturer
Schwan’s Co, the Minnesota-based food distributor, is selling a $1.8 billion stake to South Korean’s largest food manufacturer, according to the Associated Press.
CJ CheilJedang is spending over a billion dollars on an 80% stake in Schwan’s, known for its iconic yellow-gold home delivery trucks.
In fact, Schwan’s will make it easy for CJ to bring more Koran food products to the United States of America.
According to a post published on Nakkei, the acquisition of 80% stake is the biggest deal ever by a South Korean Company.
South Korean food giant CJ buy US frozen food company for $1.84 bln
CJ's shares rose 4 percent after the news. The broader market was flat. This buyout is among the biggest outbound deals in recent years by a South Korean company, following Samsung Electronics' $8 billion purchase of U.S. car tech company Harman and LG Electronics' $1 billion takeover of an Austrian auto light maker.
After all, Schwan’s is a bigger company, a business that scoops an annual revenue of $3 billion every year in the frozen pizza market.
Conclusion
At the time of this writing, Schwan’s has been rated as the second largest company with the biggest frozen pizza market share. It currently has 12,000 employees.
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