Trade Resources Company News KKR and Three Other Investors to Invest in China's Cofco Meat

KKR and Three Other Investors to Invest in China's Cofco Meat

Private equity firm KKR, along with three other investors, has agreed to invest $270m for 70% stake in integrated pork company COFCO Meat, a unit of China's state-run COFCO Group.

While KKR is the lead investor, paying $150m, other investors include Baring Private Equity Asia, Hopu Investment Management Co. and Boyu Capital, Reuters reported citing undisclosed sources.

The investment will help COFCO Meat to build and manage large-scale industrialized hog farms and meat processing plants in China.

COFCO Group chairman Ning Gaoning said meat is the single-largest food category in China's diet, and meeting this demand is a critical link and a natural extension of the company's value chain.

"Chinese consumers demand of COFCO to promote the meat industry and provide safe meat products. Bringing in the four strategic investors is an action by COFCO to diversify our equity ownership and enhance our corporate governance.

"We look forward to creating synergies among the shareholders to improve the operations and management of COFCO Meat, and together grow COFCO Meat into a much bigger actor in China's meat industry," Gaoning added.

Established less than five years ago, COFCO Meat is engaged in hog and poultry production, processing, distribution, and meat imports and exports, and is one of the largest hog producers in China.

The company distributes its fresh meat and processed meat products under the Joycome and Maverick brands.

Source: http://meatandseafood.food-business-review.com/news/kkr-led-consortium-to-acquire-stake-in-chinas-pork-company-cofco-meat-060614-4286732
Contribute Copyright Policy
KKR-LED Consortium to Acquire Stake in China's Pork Company Cofco Meat