S. Korea's CJ Cheiljedang considers buying U.S. processed food maker

By Lim Chang-won Posted : June 7, 2018, 10:29 Updated : June 7, 2018, 10:29

[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]


SEOUL -- CJ Cheiljedang, a key subsidiary of South Korea's food and entertainment conglomerate CJ Group, considers acquiring a U.S. food processing company as part of efforts to boost competitiveness in its overseas business.

The company said it was considering buying an American company but refused to confirm news reports that the target of acquisition would be Schwan's Company based in Marshall, Minnesota.

"We are reviewing purchasing a U.S. processed food maker as part of efforts to boost competitiveness in our overseas foods business, but nothing concrete has been decided," the company said in a regulatory filing on Thursday.

Schwan's Company sells frozen foods from home delivery trucks, in grocery store freezers, by mail, and to the foodservice industry. The American company produces and distributes products developed under brands such as Schwan's, Red Baron, Freschetta, Tony's, Mrs. Smith's, Edwards, Pagoda and Larry's.

The CJ group has sought aggressive expansion since chairman Lee Jay-hyun came back to his office in May last year after four years of absence. It has subsidiaries specializing in food, food service, pharmaceutics, biotechnology, entertainment, media, home shopping and logistics.

CheilJedang, the world's largest producer of lysine, an amino acid used as additives for animal feed and food additives, has built an overseas network of animal feed plants in China and Southeast Asian countries.
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