Carlyle's Another Investment in China!

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 20, 2009 -- On September 16th, Carlyle offered a $1bn deal to purchase the Taiwan Mobile's Kbro, one of the region's leading pay-television operators. Now the US private equity fund has finished its investment in a China milk powder maker in less than a week.

Carlyle Group yesterday unveiled a substantial strategic investment in Yashili, one of China's leading milk powder producers. The move underscored an increase in foreign involvement in the dairy industry.

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Carlyle's Another Investment in China!

The fund has taken a 17.3 peercent in the family-owned company based in the southern province of Guangdong, which specialises in infant formula milk and is a top-three national producer.

Further financial details were not disclosed. The investment was made through Carlyle Asia Partners, a fund that typically spends between $100m and $200m on individual deals.

The investment comes as China seeks to modernise a fragmented dairy-related industry whose reputation was badly dented following last year's melamine scandal.

The scandal led to worldwide recalls of foods that contained Chinese dairy ingredients and tarnished the image of Chinese products well beyond the dairy industry. And some Yashili products were recalled as a precaution.

Patrick Siewert, a senior Carlyle executive and former head of Coca-Cola's Asian operations, told the Financial Times that the tie-up would help to strengthen management and provide finance.“Yashili will also benefit from our commitment to leveraging Carlyle's global contacts and expertise to boost product quality and to raise scientific standards,” he said.

As part of the tie-up, Carlyle has promised to help Yashili recruit a chief quality officer, and set up a food and safety advisory committee of leading experts.

dairy industry     infant formula milk     melamine scandal     milk powder maker     strategic investment