Kohlberg Kravis Roberts (KKR), a US-based private equity investment firm, has agreed to acquire 18% stake in Chinese chicken meat producer Fujian Sunner Development for around $400m.
A definitive agreement to this effect was signed between KKR and Fujian Sunner.
The move forms a part of KKR's commitment to meet the growing demand in China for a safer and more secure food supply.
Under the agreed terms, KKR and Fujian Sunner will form a strategic partnership to expand the latter's operations to provide safe and quality chicken products to Chinese consumers.
KKR member Julian Wolhardt said: "Vertically integrated chicken farming is a key solution to the food safety threats facing China's animal protein sector. Sunner has an excellent track record and has thoughtfully constructed its farms and processing facilities at strategic locations to ensure chicken quality and health.
"It is a unique company within its industry with an outstanding management team and we look forward to partnering with Sunner as it expands its operations to meet the increasing consumer demand for safe high-quality protein."
Fujian Sunner breeds, processes and supplies fresh and frozen chicken for China's fast food industry, food manufacturing industry and meat wholesale markets.
Though chicken is a fast-growing protein segment in China, only 17% is actually consumed in the country versus nearly 40% in Taiwan and Hong Kong.
