S.Korean food giant CJ buy U.S. frozen food company for $1.84 bln (updated)

CJ CheilJedang

15/11/2018 06:34

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    SEOUL, Nov 15 (Reuters) - South Korea's CJ CheilJedang Corp
 097950.KS  said on Thursday it bought privately held U.S.
frozen foods firm Schwan's Co for $1.84 billion, the South
Korean food-to-entertainment conglomerate's biggest-ever
acquisition. 
    The acquisition builds on CJ's push into the United States.
The firm in August bought Ohio-based Kahiki Foods, a supplier of
frozen Asian meals to stores including Walmart Inc  WMT.N .
    The latest deal will give CJ access to Schwan's distribution
network, including logistics centers and delivery vehicles, as
it looks to expand its existing U.S. business focused on Korean
food such as dumplings and noodles, CJ said in a statement.
    Schwan's, owner of brands such as Red Baron, Freschetta,
MaMa Rosa's and Tony's pizza, has an annual revenue of $3
billion and the second-largest U.S. frozen-pizza market share,
Jefferies said in a research note last month. 
    It employs 12,000 people.
    CJ's shares rose 4 percent after the news. The broader
market  .KS11  was flat.
    This buyout is among the biggest outbound deals in recent
years by a South Korean company, following Samsung Electronics'
 005930.KS  $8 billion purchase of U.S. car tech company Harman
and LG Electronics'  066570.KS  $1 billion takeover of an
Austrian auto light maker.
 ($1 = 1,128.6000 won)

 (Reporting by Ju-min Park; Editing by Muralikumar Anantharaman
and Sayantani Ghosh)
 ((ju-min.park@thomsonreuters.com; +82 2 3704 5650; Reuters
Messaging: ju-min.park.thomsonreuters.com@reuters.net))