US-based food business Schwan‘s has signed an agreement to divest an 80% stake in the company and its subsidiaries that serve the foodservice and retail segments to South Korean firm CJ CheilJedang (CJCJ).

According to Reuters, the total consideration of the transaction is $1.84bn, which includes the sale of the company’s manufacturing and logistics operations, as well as various professional and administrative services.

Founded as a home-delivery business, Schwan’s currently has around 12,000 employees and operates brands such as Red Baron, Freschetta, Tony’s Pizza, Edwards and Mrs. Smith’s Desserts.

“By becoming a part of an innovative, global team such as CJCJ, Schwan’s will be positioned to achieve new levels of growth.”

Schwan’s board member Paul Schwan said: “This is an exciting time. Over the past 66 years, our family, with the help of thousands of employees, has proudly built a very unique and successful food business that reaches consumers virtually everywhere they eat.

“By becoming a part of an innovative, global team such as CJCJ, Schwan’s will be positioned to achieve new levels of growth in the spirit of the vision put forth by my father so many years ago.”

The transaction is expected to close in the following months. On completion, Schwan’s will hold the remaining 20%, as well as 100% of its home-delivery business, which was launched in 1952.

Following the transaction, CJCJ will operate the food business as a subsidiary of CJ Foods America and will continue to operate the business from its headquarters in Marshall and Bloomington, Minnesota.

CJCJ will also retain the current senior management team to operate the business.