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PE firm invests $54 million into CJ Foodville

Published: 14 Dec. 2023, 19:14 Updated: 14 Dec. 2023, 19:17

SEO JI-EUN
[email protected]

[CJ FOODVILLE]

CJ Foodville, a food affiliate of CJ Group, attracted 70 billion won ($54.02 million) investment from a private equity fund in exchange for its 12.3 percent stake, following the global market expansion of its bakery chain, Tous Les Jours.

Korean bakeries earn their crust overseas, build more plants

CJ Foodville issued approximately 1.29 million new shares, utilizing a third-party allotment, during a rights offering, and received 70 billion won from Arges Private Equity (Arges PE), a Korean private equity firm, the company announced Thursday. This transaction valued CJ Foodville at around 500 billion won. Arges PE, with its new 12.3 percent stake, has become CJ Foodville's second-largest shareholder.

Agres PE was chosen as the preferred bidder in August. The deal reached its conclusion, with the payment of the funds, after a three-month negotiation process.

“With the newly acquired funds, we plan to capitalize on future growth opportunities on the global stage, such as bolstering Tous Les Jours' presence in the North American market,” a CJ Foodville official said.

CJ Foodville has been in the black since its turnaround in the North American market in 2018. In September, the company announced plans to establish a factory for Tous les Jours in Gainesville, Georgia. The plant, with an annual production capacity of more than 100 million units, is slated for completion in 2025.

BY SEO JI-EUN [[email protected]]