CJ CheilJedang is set to acquire the remaining shares of Schwan’s Company, a U.S. frozen food giant it took control of seven years ago.
Industry sources reported on Tuesday that CJ CheilJedang held a board meeting earlier this year, deciding to purchase an additional 24.5% stake owned by the Schwan family.
To facilitate this acquisition, the company has reportedly signed a contract to amend the existing shareholder agreement.
In early 2019, CJ CheilJedang secured management control by acquiring a 70% stake in Schwan’s Company, valuing the business at approximately 2 trillion KRW (about 1.34 billion USD). The company later sold a portion of its shares to global private equity firm Bain Capital, only to repurchase them, increasing its ownership stake to 75.5%.
A CJ CheilJedang spokesperson stated that during the board meeting earlier this year, it decided to amend the existing shareholder agreement related to Schwan’s to proceed with the acquisition of the remaining shares. The agreement has been revised accordingly.
In related news, CJ CheilJedang appointed Gregory Yeap, head of its food division, as the interim Chief Executive Officer (CEO) of its U.S. subsidiary, CJ Schwan’s, on Monday. The former CEO, Brian Shig, stepped down at the end of last month, and the company is actively searching for a permanent replacement.
Founded in 1952, Schwan’s operates 17 production facilities and 10 distribution centers across the United States. Since its acquisition in 2019, CJ CheilJedang has been leveraging Schwan’s as a strategic hub for its U.S. food operations.