GIC And Olympus Capital Lead $106M Series D In Huaxia Dairy

Sanhe city, Hebei province-based Chinese dairy company Huaxia Dairy Farm Limited has received US$106 million in series D financing from a consortium led by Singapore’s GIC and Olympus Capital Asia, according to a company announcement.

GIC is investing US$70 million, and Olympus Capital Asia is injecting US$30 million. Existing investors including Grand River Capital will invest the remaining US$6 million.

Combined with its previous investments, Olympus Capital Asia has now invested $108 million in the company and is its largest shareholder.

Huaxia Dairy says it will use the proceeds to fund the expansion of the company’s farming operations and its retail dairy products business.

In 2012, Huaxia Dairy received US$50 million in series C financing led by Mount Tai Transfers, with co-investors including California Technology Ventures, Herostar Holdings, and Grand RiverCapital.

In July 2011, it received US$45 million series B financing led by Mount Tai Transfers and European dairy producer Mueller Milch Management. Before that, it received an undisclosed amount of series A financing led by California Technology Ventures.

Founded in 1997, Olympus Capital focuses on investing in the middle market across Asia. It has invested approximately US$1.8 billion in the region.

Lately, both Chinese and Western private equity firms and other investors have been scrambling to strike deals in the Chinese dairy industry, hoping to capitalize on the planned government-guided consolidation of the sector.

In early June, Chinese private equity firms Yunfeng Capital and CITIC Private Equity Funds Management (CITIC PE) agreed to invest at least RMB2 billion (US$320 million) in a unit of Chinese dairy firm Inner Mongolia Yili Industrial Group Co. Ltd.

In March, Hong Kong-listed Fosun International agreed to acquire a 20.45% of Beijing-based dairy firm Sanyuan Foods Co., Ltd. for RMB$2 billion ($325 million). In February, Hong Kong-based Asian private equity firm RRJ Capital agreed to invest US$250 million in Shanghai-based Bright Dairy & Food Co., Ltd.

Last November, Hong Kong-listed Chinese dairy firm Yashili International Holdings Ltd. says that Temasek Holdings, Hopu Investment Management Co. and three private investors will buy a 13.24% stake of the company from China Mengniu Dairy for HK$1.6 billion ($213 million).

Last September, Kohlberg Kravis Roberts & Co. and CDH Investments formed a joint venture with Modern Dairy to build two large-scale dairy farms in China.

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