CJ CheilJedang Sells Animal Feed Subsidiary CJ F&C in 1 Trillion Won Deal
CJ Feed & Care Valued at 1 Trillion Won
Final Agreement Signed with Royal De Heus of the Netherlands
CJ CheilJedang is selling its animal feed and livestock subsidiary, CJ Feed & Care (CJ F&C).
On October 1, CJ CheilJedang announced that it had signed a Sales and Purchase Agreement (SPA) with a buyer to sell its animal feed and livestock subsidiary, CJ F&C. The deal was finalized at a corporate value of around 1 trillion won.
The buyer is Royal De Heus of the Netherlands. As one of the global top 10 companies producing animal feed, Royal De Heus operates in over 70 countries, including Europe, Asia, the Middle East, Africa, and Latin America.
This sale is expected to accelerate the growth of CJ CheilJedang's core businesses and help improve its financial structure by reducing debt and interest expenses.
A CJ CheilJedang representative stated, "The sale of CJ F&C is part of our 'selection and concentration' strategy to further strengthen our high-growth core businesses, and we expect it to have a positive effect on improving our financial structure."
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Meanwhile, as of last year, CJ F&C recorded sales of 2.3085 trillion won and operating profit of 74.7 billion won. Operating profit turned positive from the second quarter of last year, driven by rising livestock prices in key markets such as Indonesia and Vietnam, as well as efforts to stabilize manufacturing costs through improved productivity.
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