CJ CheilJedang to acquire Brazilian firm for W360b
[THE INVESTOR] CJ CheilJedang announced on June 12 that it has decided to acquire 90 percent stake in Brazilian SPC manufacturer Sementes Selecta for 360.05 billion won (US$318.62 million), the first large investment since its chairman returned to the office last month after four years’ absence.
This is part of the food and bio conglomerate’s implementation of its 800 billion won annual revenue target plan.
Selecta is the global leader in soy protein concentrate market with 400 billion won sales and 55 billion won operating profit with a sales network in 37 countries. CJ CheilJedang intends to acquire the remaining stake within a couple of years, said the company.
CJ is expecting the acquisition will create synergy with its soybean oil meal plant in Vietnam so that it can tap into the vegetable-based high protein feed ingredient market, which is estimated to be worth 1.6 trillion won worldwide.
The food processing arm of CJ Group also announced plans to invest 540 billion won to build a food processing and manufacturing facility in Jincheon, North Chungcheong Province, by 2020. With an annual capacity to produce 120,000 tons worth 500 billion won, it will be the nation’s largest when it begins operation in October next year.
By Hwang You-mee (email@example.com)