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Chinese investors targeting four-legged gourmets
Published on: 2017-10-27
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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.
 

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.

031Nick 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."

034Vitamins, 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.

032Quadrant 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.

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.

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