By WSJ Staff 
 

Minnesota-based food manufacturer Schwan's Co. said it agreed to sell a majority stake to CJ CheilJedang Corp. (097950.SE), or CJCJ, of South Korea.

Under the deal, CJCJ will acquire 80% of Schwan's and certain subsidiaries focused on products sold in retail outlets and food-service venues, the company said Thursday.

The Schwan family will retain the remaining 20% stake in the operations being sold to CJCJ, Schwan's said. The family will maintain full ownership of the company's home-delivery business, it said.

The company didn't provide financial details of the deal.

Among the company's brands are Red Baron and Tony's pizza, Mrs. Smith's desserts and Pagoda Asian-style snacks.

The transaction is expected to close in the next 60 to 90 days, Schwan's said. After the deal closes, Schwan's will be operated as a subsidiary of CJ Foods America Corp., the company said. Its operations will continue to be based at corporate offices in Marshall and Bloomington, Minn., and the existing senior management will remain in place, Schwan's said

The deal positions the 66-year-old company "to achieve new levels of growth in the spirit of the vision put forth by my father, Marvin Schwan, so many years ago," said board member Paul Schwan.

(END) Dow Jones Newswires

November 15, 2018 05:28 ET (10:28 GMT)

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