China buys QLD’s The Real Pet Food Company for $1bn

A Chinese-led consortium has struck a billion-dollar deal to buy a Queensland-based pet food giant to exploit the growth of “pet humanisation” in the United States and ultimately China.

The majority owner of The Real Pet Food Company (TRPC), Quadrant Private Equity, has sold its interests to the Beijing-based Hosen Capital, China’s largest agribusiness company New Hope Group and the Singapore Government’s investment vehicle, Temasek.

Quadrant Private Equity bought into The Real Pet Food Company in 2015, along with the founding Quinn family and its management.

The proposed billion-dollar sale is a major coup for Quadrant and the Quinn Family.

The company is known for its pet food brands such as Nature’s Gift, Nature’s Goodness, Farmers Market and Ivory Coat.

The deal — which needs approval from Australia’s Foreign Investment Review Board (FIRB) — is targeting the growth of “pet humanisation” in the United States, Europe and eventually China’s modernising economy where pets are becoming part of the family.

Nick Dowling, Australian chief executive of New Hope Group said the acquisition was a logical step for the consortium.

“This is a fantastic opportunity to take a really successful Australian company global to follow the theme of global pet humanisation,” Mr Dowling said.

“It’s the move of pets out of the backyard, through the kitchen and into the bedroom.

“For us, this is something we think we can collectively deliver to the world.”

Vitamins, milk, baby formula, now dog food

With the US and Europe key initial markets, Mr Dowling sees changing social and economic times in China as a major potential focus.

“In China, the powerful force is the change in family structures, an increase in urban lifestyles and rising incomes. What that’s leading to is very important forces particularly with millennials and with empty nesters,” Mr Dowling said.

The consortium is hoping to cash in with China’s new wealth in a similar vein as vitamin supplement supplier Blackmores, dairy producer A2 Milk and baby food maker Bellamy’s.

The deal has been referred to the FIRB and Treasurer Scott Morrison will have the final say on whether the acquisition is in the national interest.

“We certainly have made our representations but we think this is a great news story for a really fantastic Australian company,” Mr Dowling said.

Quadrant Private Equity bought into The Real Pet Food Company in 2015, along with the founding Quinn family and its management.

The proposed billion-dollar sale is a major coup for Quadrant and the Quinn Family.

The company is known for its pet food brands such as Nature’s Gift, Nature’s Goodness, Farmers Market and Ivory Coat.

Real Pet Food Company chief executive David Grant will join the board of the consortium as part of the proposed deal.

Biggest fresh pet food producer globally

The proposal is likely to attract controversy, given scrutiny of Chinese investments in Australia and the nation’s growing presence in Australia’s food bowl.

“We have worked closely with David and his team to invest significantly in the operations, new product development and international expansion,” Quadrant executive chairman Chris Hadley said.

“We are proud of what we have achieved over the past two years and believe David and his team are well placed with their new partners to continue to build TRPC into a world-leading pet food business.”

TRPC is Australia’s leading independent pet food company and the largest producer of fresh chilled pet food in the world.

It makes and distributes products locally and internationally with annual revenue worth about $500 million, up from $300 million only two years ago.

The deal also comes as Quadrant prepares to restock its acquisition war-chest barely a year after last raising funds.

As first reported by this column, Quadrant has been warming up investors about a new $1 billion-plus fund, which is slated to be finalised as soon as the end of this year.

It would be Quadrant’s ninth fund and comes hot on the heels of a $980 million raising, which was only completed in August 2016.

Source: http://mobile.abc.net.au/news/2017-10-24/chinese-investors-sink-teeth-into-pet-food-company/9081298?pfmredir=sm

4 Comments Add yours

  1. Merinda Sharp says:

    What the fuck else ?

    Like

  2. Jennifer marshall says:

    No more selling off our country to foreign buyers!

    Like

  3. Diane says:

    The ruin of one of the best dog foods out t here. I will no longer purchase as one of the main reasons was AUSTRALIAN PRODUCT.

    Like

  4. Joan says:

    Enough is enough. Your government and every other government are not elected to sell off our country. Have you not already learnt from the past eg selling off our utilities.

    Like

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