June 1, 2023

Cargill to sell poultry business in China to DCP Capital

Agribusiness giant Cargill has announced its agreement to offload its poultry business in China to private equity firm DCP Capital, Channel News Asia reported.

The sale of Cargill's poultry division, known as Cargill Protein China, is contingent upon regulatory approvals but is anticipated to be finalised within this year, the company said.

Included in the sale are chicken farms located in Chuzhou, situated in the eastern Anhui province, along with associated manufacturing facilities.

Cargill refrained from disclosing the specific transaction price in its announcement.

Since its entry into the Chinese poultry market in 2011, Cargill has been engaged in the breeding, raising, and processing of chickens. In 2019, the company expanded its operations with a new plant, valued at US$48.8 million.

According to its website, DCP Capital, the buyer, has invested in various food and agriculture enterprises, including Fujian Sunner Development, one of China's prominent poultry producers.

DCP Capital is a private equity firm primarily focused on the Greater China region, led by former members of the KKR and Morgan Stanley private equity businesses.

-      Channel News Asia