Boen Group plans to acquire 3 China-based feed subsidiaries from CJ Global Holdings for CNY 125 million (USD 17.41 million), a move that could expand its production footprint and market reach in northeast, north, and east China. The deal comes as CJ’s feed presence in China has been reduced through deregistrations, restructuring, and asset changes, while Boen continues to strengthen its position in young animal and sow-piglet nutrition.
Guangzhou-based Boen Group announced on the evening of May 25 that it plans to acquire 100% equity in 3 China feed subsidiaries owned by CJ Global Holdings Limited for a provisional transaction price of CNY 125.00 million (USD 17.41 million).
The target companies are CJ (Shenyang) Feed Co., Ltd., CJ (Tianjin) Feed Co., Ltd., and CJ (Liaocheng) Feed Co., Ltd. According to the announcement, the 3 companies were established in 2003, 2005, and 2011, respectively. All 3 have the same board composition, with Kim Tae-hwa serving as chairman. The announcement did not provide financial data for the target companies.
CJ’s changing feed footprint in China
CJ Global Holdings, backed by South Korean conglomerate CJ Group, invested in 10 feed subsidiaries in China between 2003 and 2011, according to business registration information. Its Zhengzhou, Harbin, and Guiyang subsidiaries have been deregistered, while its Nanjing subsidiary is undergoing bankruptcy liquidation.
Besides the 3 target companies, CJ Global Holdings still has subsidiaries in Qingdao and Changchun, as well as Kefite Feed (Tianjin) Co., Ltd. The latter was acquired by CJ in April 2025 from another South Korean company, Kefite Co., Ltd.
According to AgriPost, CJ formally entered China’s feed sector in 2002 with the establishment of CJ (Chengdu) Feed Co., Ltd. That company has since changed into Chengdu Zhishenghe Trading Co., Ltd., which is controlled by Chinese capital and mainly sells building materials. CJ also established CJ (Changsha) Feed Co., Ltd. in 2005; that company is now Changsha Anyou Biotechnology Co., Ltd.
Deal terms and commitments
Under the term sheet for the latest transaction, Boen must pay a CNY 7 million (USD 974,930.36) transaction deposit. If the parties fail to sign a formal equity transfer agreement by August 31, 2026, or another date agreed in writing, the deposit will not be refunded. The same applies if, due to reasons attributable to Boen, the transaction fails to obtain regulatory approval, where required, or is not completed within the agreed period due to reasons attributable to Boen.
Both sides have made commitments. The transferor guarantees that the trademarks used by the target companies, as well as patents, formulas, and other intellectual property related to existing products, are owned by the target companies. From the closing date, it will not engage in any feed business in China that substantially competes with the target companies for 3 years, nor will it solicit their core personnel.
The transferor also committed to operating the target companies in good faith during the transition period and avoiding major adverse events that could affect their continued operation. It will assume compensation responsibility for contingent liabilities existing before closing, including social security, tax, and asset impairment issues, with total compensation capped at CNY 25 million (USD 3.48 million).
Boen, as the buyer, committed to continuing all labour contracts of the target companies’ current employees, including Korean management personnel. Within 2 months from closing, it will not unilaterally change the target companies’ organisational structure or core personnel positions. Within 180 days from closing, it will complete the change of trade names and stop using the “CJ” trade name and trademarks.
Boen will also broadly assume all assets, liabilities, rights, and obligations of the target companies and will ensure that lending banks fully release the transferor from guarantee obligations.
Boen eyes wider regional coverage
Boen Group said the target companies have mature production bases, trademarks, and technical know-how in the feed sector. If completed, the transaction will help the company expand its feed production layout, improve market coverage in northeast, north, and east China, and strengthen its overall competitiveness and sustainable development capacity.
According to Boen’s 2025 annual report, the company generated revenue of CNY 1.36 billion (USD 189.42 million) last year, up 33.8% year-on-year. Its loss narrowed from nearly CNY 30 million (USD 4.18 million) a year earlier to about CNY 20 million (USD 2.79 million).
The company has long focused on high-end young animal nutrition products, including creep feed and suckling pig feed. In 2025, it further advanced its strategic upgrade from a “young animal nutrition supplier” to an “integrated sow-piglet nutrition specialist”, building a full-cycle nutrition system covering sires, sows, and piglets.
By region, east China and south China contributed about 34% and 33% of Boen’s revenue last year, respectively. Northeast and north China accounted for less than 2% and 4%, respectively.
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