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(Seoul=NSP News Agency) soon ki Lee Journalist = CJ Cheiljedang will acquire Schwan’s Company, a US frozen food specialist.

With the acquisition of Schwan’s Company, CJ Cheiljedang came to secure ‘K-Food Diffusion Platform’ with the infrastructure of food production and distribution and R&D capability across the US.

CJ Cheiljedang held its board of directors meeting on Nov 15 and decided to acquire Schwan’s Company for a total of $ 1.84 billion (about 2 trillion won).

In order to maintain the stable operation and expansion of the business after the takeover, the company attracted a 20% stake from the existing major shareholders and lowered its financial burden by eliminating Schwan's Home Service, a deficit business unit.

For the acquisition fund, CJ Cheiljedang will use its own funds such as proceeds from the sale of CJ Healthcare for $ 1.34 billion(about 1.5 trillion won), and procure the remaining $ 500 million (about 550 billion won) through the borrowing of Schwan’s Company.

The two companies will complete the acquisition early next year through related procedures such as declaration of business combination, etc.

Kang Shin Ho, ceo of food business division of CJ Cheiljedang, emphasized, “It is a strategic decision to go closer to ‘World Best CJ’, a vision of the group, accelerating ‘the globalization of Korean food culture’, the food business philosophy of President Lee Jae Hyeon, through the launch in North America, the largest market of the global food industry.”

NSP News Agency/NSP TV soon ki Lee Journalist, s8789@nspna.com
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