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Second report says Korean company looking to buy Schwan’s

MARSHALL — Another report has said a South Korean corporation is interested in buying Schwan’s Company. On Wednesday, the Reuters news agency said the food giant CJ CheilJedang Corp was among bidders looking to buy Schwan’s, in a deal estimated at more than $1.79 billion.

It’s the second time CJ CheilJedang has been mentioned as a potential buyer for Schwan’s. In June, a South Korean business news service said CJ CheilJedang, a subsidiary of the CJ Group conglomerate, took part in a preliminary bidding process to acquire a U.S. food company.

Wednesday’s Reuters story quoted an unnamed source as saying CJ CheilJedang was among several bidders interested in Schwan’s, but a preferred bidder had not been decided. Reuters said the source had direct knowledge of the deal, but declined to be named as he was not authorized to speak on the matter. Reuters also said the source declined to say whether CJ CheilJedang would bid alone, or as part of a consortium.

The Independent attempted to reach a Schwan’s media contact by phone and email on Thursday, but the messages weren’t returned as of press time.

Last year, CNBC reported that Schwan’s had hired investment bank Piper Jaffray to look at options including a potential sale of the company. At the time, Schwan’s spokespeople declined to comment on speculation about a sale.

The Reuters report said a CJ CheilJedang spokesman declined to comment on a potential Schwan’s acquisition.

In a June regulatory filing, CJ CheilJedang said the company was considering acquiring a U.S. processed food company to improve CJ’s competitiveness overseas. However, the filing didn’t specifically say whether CJ CheilJedang was pursuing Schwan’s.

Schwan’s Co. was founded in 1953. Over the years, the Marshall-based company has grown to include home delivery of ice cream and frozen foods, as well as brands like Tony’s, Freschetta and Red Baron Pizza, Mrs. Smith’s pies and Edwards desserts. Schwan’s recently opened the Edwards Dessert Kitchen in the North Loop of Minneapolis.

However, this year the Minneapolis Star Tribune also reported that Schwan’s is facing increased competition from online meal kit and grocery delivery businesses. The company has also had to adjust to changing consumer preferences for fresh foods.

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