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CJ CheilJedang headquarters (Photo: CJ) |
[Alpha Biz= Kim Jisun] CJ Group plans to acquire the remaining stake in U.S. frozen food company Schwan’s Company—whose management control it secured seven years ago—to make it a wholly owned subsidiary, while pushing ahead with large-scale investments in local manufacturing plants and logistics platforms to build a strong food business network spanning manufacturing, logistics and sales.
The move is widely seen as a strategic push to significantly expand the presence of K-food in North America, as CJ CheilJedang’s food sales in the United States—led by brands such as Bibigo—are expected to grow even more rapidly.
According to an exclusive report by the Seoul Economic Daily on March 16, CJ CheilJedang recently signed an agreement to acquire the entire 24.5% stake in Schwan’s held by the founding family. The company plans to complete the transaction within this year.
CJ CheilJedang first acquired a 70% stake in Schwan’s in early 2019, valuing the company at about KRW 2 trillion. Later that year, it sold roughly 20% of its stake to global private equity firm Bain Capital to secure liquidity.
In 2021, the company repurchased Bain Capital’s stake to stabilize its management control and subsequently streamlined the ownership structure of its local subsidiaries, raising its stake to 75.5% by 2023.
With the acquisition of the remaining shares, CJ CheilJedang will fully remove the influence of the founding family and establish a faster decision-making structure.
Industry sources estimate that Schwan’s corporate value in the latest transaction could exceed KRW 6 trillion—more than triple its valuation at the time of CJ’s acquisition in 2019.
As of the end of last year, Schwan’s total assets stood at KRW 6.18 trillion, including equity capital of KRW 3.86 trillion. The company’s annual sales are estimated to be approaching KRW 5 trillion, with operating profit projected to reach around KRW 300 billion, reflecting continued growth in performance.
Bibigo currently serves as the key brand driving CJ CheilJedang’s North American food business. In particular, Bibigo dumplings have secured more than a 40% share of the U.S. consumer (B2C) dumpling market, making them the leading brand in the category.
From January to September last year, Bibigo dumplings recorded a 33% increase in sales—more than double the 15% growth rate of the overall U.S. B2C dumpling market.
With the popularity of Korean content continuing to rise globally, industry observers believe the growth of Korean food products in the U.S. is only beginning, extending beyond dumplings to a broader range of offerings.
In fact, K-food products such as frozen kimbap and instant noodles have recently gained significant popularity through word-of-mouth on social media platforms in the United States.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
