S.Korea's CJ eyes U.S. food firm Schwan's in potential $1.8 bln deal -source

CJ

01/08/2018 11:08

SEOUL, Aug 1 (Reuters) - South Korean food giant CJ
CheilJedang Corp  097950.KS  is among several bidders looking to
buy U.S. frozen foods firm Schwan's Company in a deal estimated
at more than 2 trillion won ($1.79 billion), a source familiar
with the matter told Reuters on Wednesday.
    Korea Economic Daily earlier reported that CJ CheilJedang,
part of conglomerate CJ Group, is joining hands with local
private equity firm JKL Partners, for the deal, to tap into the
U.S. food market, citing investment banking sources. 
    "CJ CheilJedang is among several bidders who are interested
in Schwan's, but a preferred bidder has not been decided," said
the source who has direct knowledge of the deal, but declined to
be named as he was not authorised to speak on the matter. The
person declined to say whether CJ will bid alone or form a
consortium.
    A spokesperson for CJ CheilJedang declined to comment.
Schwan's Company was not immediately available for comment
outside of U.S. business hours.
    CNBC reported last year that privately-owned Schwan's
Company hired an investment bank to consider options for selling
the company.
    In early June, CJ CheilJedang said in a regulatory filing
that it is "reviewing purchasing a U.S. processed food maker to
better improve our competitiveness in our overseas food
business." But it did not say whether it was pursuing Schwan's. 

    ($1 = 1,118.1000 won)

 (Reporting by Heekyong Yang and Hyunjoo Jin
Editing by Manolo Serapio Jr.)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 3704 5647; Reuters
Messaging: heekyong.yang.thomsonreuters.com@reuters.net))