US firm buys stake in Chinese fish feed company
An American investment firm has finished its purchase of a stake in a Chinese aquatic feed company.
The firm, KKR & Co., based in New York, is buying up part of Yuehai Feed Group Co. Ltd., which is based in Zhanjiang, Guangdong. A statement from both companies did not mention the purchase price, but KKR’s regional China head told Bloomberg that KKR is spending USD 100 million (EUR 93.8 million) for “a minority stake” in the feed company.
"We have been impressed by Yuehai's leading technology, innovative practices and extensive expertise in the feed space,” said Julian Wolhardt, Member of KKR. “With KKR's deep knowledge and experience in China's agriculture and food sector, I am confident in our collective ability to provide high-quality products to an increasingly discerning customer base."
The statement described Yuehai as “the largest manufacturer of high-end special aquatic feed products in China” and the move will expand offerings of fish feed to China’s aquatic farmers.
"Given the strong and rising demand for fishery consumption in China, it is a pivotal time for us to expand and provide healthy aquatic feed to the market,” said Zheng Shixuan, Chairman & CEO of Yuehai. “We believe KKR will become a truly value-added partner to Yuehai, and their deep expertise in food safety space in China will help us achieve these goals."
This is KKR's fifth partnership with Chinese companies in advancing food safety and security in China. The firm has worked with other leaders in the meat and dairy industries there.