CJ CheilJedang will sell its feed and livestock subsidiary CJ Feed & Care (Feed&Care · F&C). The enterprise value is reportedly in the 1 trillion won range.
According to the Financial Supervisory Service's DART filing system on the 1st, CJ CheilJedang disclosed that it signed a definitive agreement (SPA) to sell CJ F&C. The buyer is Royal De Heus, a Dutch corporations that produces animal feed. Royal De Heus was founded in 1911 by the De Heus family as a grain and milling trading company and has expanded its scope.
CJ CheilJedang has been moving to shed noncore businesses. In particular, with this CJ F&C sale, it will not only strengthen its financial soundness but also secure more than 1 trillion won in cash to invest in future growth businesses.
CJ CheilJedang plans to put more weight behind its core businesses such as food after this sale. A CJ CheilJedang official said, "The CJ F&C sale is 'selection and concentration' to further bolster core businesses with high growth potential," adding, "It will also help improve the financial structure through effects such as reducing interest expense due to a decline in borrowing fund."
CJ F&C operates 27 feed plants across seven Asian countries and runs feed and livestock businesses. In 2020, it unveiled the fresh meat brand "Meat Master." Based on last year, it posted revenue of 2.3085 trillion won and operating profit of 74.7 billion won. As profitability improved in Indonesia and Vietnam, its main markets, operating profit swung to the black from the second quarter of last year.