Fujian Sunner Development Announces Closing of KKR's Strategic Investment
Partnership will provide safe and high‐quality chicken in
Sunner and KKR's new strategic partnership will expand the Company's operations to provide safe chicken products to increasingly discerning Chinese consumers who seek high‐quality meats. The two will partner in supporting the company's growth by leveraging Sunner's industry knowledge and specialist expertise with KKR's global and local agricultural investment experience and network.
Sunner is China's largest breeder, processor and supplier of chicken products, providing fresh and frozen chicken for China's fast food industry, food manufacturing industry and meat wholesale markets. Through its vertically integrated facilities, Sunner has oversight of the full production chain, ranging from chicken farming to the management of feed mills to processing, which better ensures safe and quality food products and meet high environmental standards.
Since the strategic investment was first announced in
Sunner aims to increase its production volume by 30% in 2015, and more than double its current production capacity to 750 million heads of white feather chicken by 2019. The expansion plan is a testament to Sunner and KKR's confidence in Chinese consumer demand for high‐quality chicken meat, despite the current chicken price at a cyclical low. To enhance the local supply and demand balance,
Fu Guangming, Chairman of Sunner, said, "We welcome KKR as a world‐class investor to support Sunner's growth. KKR has done a number of successful investments in China's agriculture and food safety space. We believe they will bring great agricultural experience and management expertise to this partnership and together we look forward to enhancing Sunner's ability to meet China's demand for healthy chicken products."
"We recognize Sunner's achievements and growth potential given consumers' demand for safe chicken in
"Sunner's strong management team, excellent track record and ability to ensure chicken quality and health all enable it to be a unique solutions provider to the food safety threats facing China's animal protein sector. We look forward to being part of the next step of Sunner's development," added
Along with the equity investment, KKR and Sunner entered into a strategic cooperation agreement and will form a joint working group to drive value in operational improvement, corporate governance and other strategic initiatives.
Sunner successfully realizes the traceability of its products to guarantee the food safety by leveraging its fully integrated production chain, and becomes the strategic cooperative partners of many distinguished customers due to its high quality and stable supply. It is the chicken meat supplier of 2008 Beijing Olympic Games, 2010
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. KKR seeks to combine its global resources and network with local expertise to assist its investment companies by bringing value‐add beyond capital. KKR's
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