Minnesota Business Sold To South Korean Company

MINNEAPOLIS — Schwan’s Company, a leading U.S. food business based in Minneapolis, announced late Wednesday night that it has reached an agreement to sell a majority stake of the company to CJ CheilJedang (CJCJ), of Seoul, South Korea.

CJ CheilJedang will pay $1.8 billion for an 80 percent stake in Schwan’s Company.

The Schwan family will retain 20 percent ownership in the businesses being sold to CJCJ and will also retain 100 percent ownership in Schwan’s Home Service, Inc., which represents the legacy home-delivery business that Marvin Schwan launched in 1952.

The sale will also include the company’s manufacturing and logistics operations and various professional and administrative services, according to a news release.

Schwan’s will still be headquartered at its corporate offices in Marshall and Bloomington, Minnesota and the current senior management team will remain in place.

“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,” said Schwan’s CEO Dimitrios Smyrnios in a statement.

“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.”

Schwan’s Company 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 approximately 12,000 employees.

Sign Up For Patch's Daily Newsletter and Breaking News Alerts in Your Neighborhood

Image via Shutterstock