Report Speculates that Schwan’s May be Up for Sale
Is Schwan’s Company on the block? According to a recent CNBC report, the Marshall, Minnesota, USA-headquartered frozen food giant has engaged Piper Jaffray to pursue the possibilities of a sale, which could fetch over $2.5 billion. Neither Schwan’s nor Piper Jaffray has commented on the speculation.
Schwan’s Company is a privately held family-owned business that manufactures and markets frozen foods through home-delivery, retail grocery and foodservice channels. Among its brands are Red Baron, Tony’s, Bon Appétit and Freschetta pizza, Mrs. Smith’s and Edwards desserts, and Pagoda snacks.
Founded in 1952, its sales reportedly amounted to approximately $3 billion last year with earnings of about $260 million before interest, taxes, depreciation and amortization. Among Schwan’s frozen pizza brands are Red Baron, Bon Appétit, Freschetta and Tony’s. It also sells Mrs. Smith’s pies, Edwards desserts and Pagoda snacks.
The company just last week announced the launch of Schwan’s Strategic Partner Solutions, a new division focused on growing the Marshall, Minnesota, USA-headquartered frozen food company’s private label and contract packing business with retailers and food manufacturers.
Earlier this year, in a move toward diversification, it formed a strategic partnership with Trū Shrimp, a unit of Ralco, to launch an in-land shrimp production enterprise in Minnesota. While specific terms of the deal were not announced, it was revealed that Schwan’s is making a significant investment in the project, which includes a $50 million indoor aquaculture facility in Luverne and a Litopenaeus vannamei white shrimp hatchery in Marshall.