BLOOMINGTON, Minn.--(BUSINESS WIRE)--Schwan’s Company, a leading U.S. food business, and CJ CheilJedang (CJCJ) announced today that they have closed on the transaction for CJCJ’s acquisition of Schwan’s and several of its subsidiaries. With this announcement, Schwan’s Company is now operating as a subsidiary of CJ CheilJedang.
“This is an exciting time at Schwan’s. By combining our operational capabilities with CJCJ, we are creating a much stronger business that will benefit everyone who has a stake in our success,” said Schwan’s CEO Dimitrios Smyrnios. “CJCJ is a strong global company that brings a proven commitment to making bold investments in future growth, whether it’s in product innovation, brand building or manufacturing and logistics infrastructure. And, CJCJ will benefit greatly from Schwan’s talented employees, iconic brands, expansive distribution network and manufacturing capabilities, and insights into the U.S. food consumer and marketplace.”
Sinho Kang, CEO of the CJCJ food business, agreed, saying: “We are very impressed with what the employees of Schwan’s have achieved over its 67-year history and what the company’s brands and high-quality foods mean to people throughout North America. We are confident that our combined strengths will help enable deeper relationships with our collective customers and consumers, drive business growth, and support CJCJ’s vision of being a lifestyle company that delivers health, happiness and convenience to the world.”
The transaction, as previously announced late last year, includes CJCJ gaining a majority stake in Schwan’s Company and specific Schwan’s subsidiaries that focus on foods sold in retail and grocery channels as well as food-service venues. The sale also includes the company’s manufacturing and logistics operations and various professional and administrative services.
The Schwan family has retained minority ownership in the businesses being sold to CJCJ. Additionally, the family will maintain 100 percent ownership in Schwan’s Home Service, Inc., which represents the company’s legacy home-delivery business launched by Marvin Schwan in 1952. The business will continue to operate independently under the Schwan family’s ownership.
The current senior management team at Schwan’s will remain in place and the company will continue to be headquartered at corporate offices Bloomington and Marshall, Minnesota.
Schwan’s began in 1952 as a one-man-and-a-truck home-delivery business operating in rural Minnesota. Today, Schwan’s is a leading U.S. food manufacturer and marketer with brands like Red Baron®, Freschetta® and Tony’s® pizza, Edwards® and Mrs. Smith’s® desserts and Pagoda® Asian-style foods.
Based in Minnesota, Schwan’s Company is a leading U.S. manufacturer and marketer of quality foods offered through retail-grocery and food-service channels. Its many popular brands include Red Baron®, Tony’s®, Big Daddy’s®, Villa Prima™ and Freschetta® pizza, Mrs. Smith’s® and Edwards® desserts and Pagoda® Asian-style snacks. To learn more about Schwan’s, visit www.schwanscompany.com.
CJ CheilJedang is the core subsidiary in charge of the food and bioengineering business sectors of the CJ Group. It has led the development of the Korean food industry for the past 60 years and contributed to the development of the bioengineering industry as the nation’s top food company. Launched in 1953 as a food ingredient company, CJ CheilJedang has expanded its business to processed foods. CJ CheilJedang has achieved outstanding growth, quantitatively and qualitatively, in food processing and food ingredients in the food business sector, as well as the bio and pharmaceutical in the bioengineering business sector. We are striving to go beyond being the No. 1 in Korea to becoming a global leader in each business sector. CJ CheilJedang will continue to grow and evolve in the food & bio sectors by practicing the spirit of OnlyOne and develop into a global lifestyle company.