In a statement released on Wednesday, agribusiness titan Cargill announced its decision to divest its poultry business in China to private equity firm DCP Capital. The transaction, pending regulatory approvals, is anticipated to be finalized within this year. Cargill’s unit, known as Cargill Protein China, encompasses chicken farms located in Chuzhou, situated in the eastern Anhui province, as well as associated manufacturing sites.
Notably, the statement from Cargill did not disclose the financial terms of the transaction. Nevertheless, it sheds light on the company’s history in the Chinese poultry market, which commenced in 2011. Over the years, Cargill has been actively engaged in breeding, raising, and processing chickens, further bolstering its operations by establishing a state-of-the-art plant worth $48.8 million in 2019.
DCP Capital, the acquiring entity, boasts investments in various food and agriculture enterprises, including the renowned Chinese poultry producer Fujian Sunner Development, as mentioned on its website. DCP Capital stands as a private equity firm with a primary focus on Greater China, led by former members of the private equity divisions of KKR and Morgan Stanley (NYSE: MS), according to the information available on its website.
