$100 Million Private Investment in Chinese Raw Milk
CHINA - KKR & Co. LP., the private equity company of Henry Kravis and George Roberts, will invest $100 million in a Chinese raw milk supplier, betting the $18 billion market will recover from a contamination scandal, two people familiar with the plan said.
3 December 2008
1 minute read
According to Bloomberg, KKR will buy a minority stake in the Anhui province-based Modern Farm, controlled by former managers of China Mengniu Dairy Co., the nation’s biggest liquid milk producer, the two people said, asking not to be identified because it’s a private investment.
KKR is investing as China’s milk producers, the world’s third-largest, are pushed to meet higher standards by the government after a lack of quality control led to a chemical taint that killed at least six infants, reports Bloomberg. India today extended a ban on Chinese milk products by six months.
“Valuations in the industry were lowered quite a bit as a result of the milk-powder tainting,” Sophie Fan, an analyst at CSC Securities HK Ltd., said. “So now is probably a good time for private equity to enter the market, and expectations of this may be relatively high at the moment.”
TheCattleSite News Desk
