최초입력 2025.10.01 14:49:17
South Korea’s CJ CheilJedang Corp. will sell its animal feed and livestock subsidiary, CJ Feed&Care Co., to Dutch feed company Royal De Heus for around 1.2 trillion won ($851.67 million).
According to sources from the investment banking (IB) industry on Tuesday, CJ CheilJedang is expected to hold a board meeting on Wednesday and propose the stake sale.
CJ Feed&Care was founded in 2019 through the physical division of CJ CheilJedang’s bioresources division.
Based in Korea, the company operates feed, livestock, and fresh meat businesses across Southeast Asia, including Vietnam, the Philippines, and Indonesia.
It raised 2.31 trillion won in sales and 74.7 billion won in operating profit in 2024.
Although sales slightly declined compared with the previous year, it successfully turned to profit from an operating loss of 86.4 billion won.
This is the third attempt to sell CJ Feed&Care, following previous efforts in 2019 and 2020.
Industry insiders cited the lack of strong sales growth and significant earnings volatility due to fluctuations in raw material prices and changes in demand within the livestock market as key risks.
CJ CheilJedang had engaged in negotiations to sell the subsidiary to Dutch feed company Nutreco N.V., but the deal fell through due to differences over price.
Founded in 1911, Royal De Heus began as a grain trading and milling company and later expanded into the animal feed and nutrition business.
The De Heus family has maintained a family management system.
Industry insiders noted that the Dutch company appears to have moved to acquire CJ Feed&Care with an eye toward expanding its business in Asia.
The company also acquired Voeders Huys, a well-established Belgian feed producer, in the first half of this year.
CJ CheilJedang has been focusing on divesting non-core businesses for several years.
This sale is expected to allow the company to secure over 1 trillion won in cash inflow, which will help reduce its net borrowings and improve its financial structure.
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