A consortium led by Kohlberg Kravis Roberts & Company is paying around $270 million for up to 70 percent of China’s COFCO Meat Company. COFCO is a pork and poultry company producing around 900,000 hogs a year in a country which consumes 700 million hogs a year. KKR says the goal is to increase production by 5 to 6 times in the next 5 to 7 years and make COFCO “a leading provider of China’s safe meat products”.
The World Bank projects China’s pork consumption will grow from 46 million metric tonnes in 2012 to 57 million tonnes by 2020
A source tells Reuters, KKR will invest around $150 million while Baring Private Equity Asia and China’s Hopu Investments and Boyu Capital will make up the balance.
Baring Private Equity Asia is one of the largest independent equity firms in Asia with committed capital over $5 billion (U.S.) Hopu Investments is a China-focus private equity firm led by former Goldman-Sachs banker Fang Fenglei. Boyu Capital is a Chinese private investment firm with over $3 billion (U.S.) under management.
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