By acquiring the US frozen food firm, CJ CheilJedang says that the deal will help it expand overseas.
CJ CheilJedang says it will acquire 80% of Schwan’s and that the deal is expected to close next year.
It represents one of the largest foreign merger and acquisition deals carried out by CJ Group.
“By becoming a part of an innovative, global team such as CJ CheilJedang, Schwan’s will be positioned to achieve new levels of growth in the spirit of the vision put forth by my father, Marvin Schwan, so many years ago,” said Paul Schwan, a Schwan’s board member and son of the company’s founder.
Schwan’s is a leading US food manufacturer with brands such as Tony’s, Red Baron, and Freschetta pizza.
“We are entering a new and exciting era at Schwan’s, and we look forward to working closely with our new team members to further strengthen our operations and accelerate growth for the benefit of consumers, customers and employees,” added Schwan’s CEO Dimitrios Smyrnios.
“CJ CheilJedang is an extraordinarily world-class and innovative company well-known for their success worldwide, and we are very impressed with their global growth plans and investments in the United States. The future for Schwan’s and our people is very bright.”
The acquisition comes shortly after CJ Cheiljedang acquired US firm Kahiki Foods and Germany’s Mainfrost to bolster its foreign business.