US investment firm Kohlberg Kravis Roberts (KKR) has completed a series of investments in Chinese dairy Ma Anshan Modern Farming Company.
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The company, also known as Modern Dairy, is a dairy farm company based in the province of Anhui and operates centralised large-scale dairy farms in China.
“Modern Dairy’s senior management has a well-established track record in China’s dairy industry,” David Liu, head of KKR Greater China, said.
“Through our investment, we have brought in not only capital, but more importantly, international best practices and expertise in the dairy farming industry that will help Modern Dairy develop world-class facilities, and provide best-in-class, high-quality milk production that will benefit China’s consumers,” Liu added.
A spokesperson for KKR said that the investment fund saw particular opportunities to expand through large-scale farms in the “currently fragmented” Chinese dairy industry.
With KKR’s investment, Modern Dairy intends to construct another 20 to 30 large scale farms in China as well as to “pursue acquisitions” over the next few years.
Commenting on the investment Deng Jiuqiang, chairman of Modern Dairy, said: “They are great partners with a deep understanding of the opportunities and challenges of our industry. They are committed to our strategy of growth and our dedication to safety and quality. KKR is a leading global investment firm and a true value-added partner who will work with us to grow our business into a world-class dairy farming company.”
KKR declined to reveal the scale of its investment in Modern Dairy. However, reports in December last year suggested that the group was planning to invest around US$100m in the Chinese dairy sector.
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