Schwan’s Co. will sell to the largest food manufacturer in South Korea
The Hustle

Schwan’s Co. will sell to the largest food manufacturer in South Korea

Schwan’s, a Minnesota-based food distributor known for its delicious pies and its gold home-delivery trucks, has been sold to Seoul-based CJ CheilJedang -- South Korea’s largest food manufacturer. With the deal expected to close next year, CJCJ will pay $1.8B...


November 19, 2018

Schwan’s, a Minnesota-based food distributor known for its delicious pies and its gold home-delivery trucks, has been sold to Seoul-based CJ CheilJedang — South Korea’s largest food manufacturer.

With the deal expected to close next year, CJCJ will pay $1.8B for an 80% stake in Schwan’s and gain control of its businesses that serve restaurants, grocery stores, and other retailers.

All in the family

Marvin Schwan founded a home-delivery business in Marshall, Minnesota, in 1952. According to Marvin’s son and Schwan’s board member Paul Schwan, it was important to find a company to honor the family’s legacy. With CJCJ, the Schwan’s claim to have found such a business.

The family will retain 20% ownership of the food-distribution biz and 100% ownership of the Schwan’s Home Service Inc. (the home delivery business that Marvin spearheaded all those years ago).

Join 1.5m+ professionals getting The Hustle daily news brief

Business and tech news in 5 minutes or less

But why Schwan’s?

While the small town home-delivery company may not look like much, it’s done a good job of quietly staying relevant in America by building a massive (and hard-to-replicate) distribution network.

Schwan’s has about $3B in annual sales and employs about 12k. CJCJ (a conglomerate originally part of the Samsung Group), who had $14.5B in sales last year, expects to gain footing and cost efficiency in US stores with the acquisition, with the hopes of bringing Korean products into more US grocery stores and restaurants.

Join 1.5m+ professionals getting The Hustle daily news brief

Business and tech news in 5 minutes or less

100% free, no ads or spam, unsubscribe anytime

Exit mobile version