China's Hosen buys US beef processor

Hosen made the acquisition through its New Hope Investment Fund, which is anchored by New Hope Group, China's largest animal feed producer. Last year the fund also ventured overseas to buy a majority stake in Australian beef producer Kilcoy Pastoral.

Founded in 1860, Ruprecht is Chicago's oldest operating beef processor and a leading producer of value-added proteins and ready-to-eat meals. It works with independent restaurants, local and national chains, national and international distributors, and supermarkets.

Ruprecht will be integrated into the Kilcoy Pastoral group of companies, giving the company access to a new source of high-quality beef and lamb products.

"We plan to support Ruprecht with superior supply and additional investments, to solidify its competitive position, and to grow its product offering and market positions," said Alex Zhang, a partner at Hosen and chairman of Kilcoy Pastoral.

Based in Queensland, Kilcoy Pastoral is one of the largest beef processors in Australia, processing over 260,000 grain-fed cattle per year and exporting premium beef to over 20 countries worldwide. The company is best known for its Blue Diamond-branded products.

Hosen manages two other funds in addition to the New Hope Investment Fund and counts groups from the US, Singapore, Japan and China among its LPs. New Hope Group previously backed Hosen Capital's agriculture-focused renminbi fund - New Hope Agricultural Investment Fund - which raised RMB1 billion ($162 million) in 2010.

The PE firm's investment thesis is rooted in the technology needs of China's increasingly industrialized farming sector as well as meeting rising demand among Chinese consumers for high quality and safe food products. This has prompted financial and strategic investors to buy up agricultural resources overseas, with the US and Australia particularly attractive targets.

WH Group - formerly known as Shuanghui International and backed by several PE players, including CDH Investments - notably acquired US-based Smithfield Foods in 2013 and went public in Hong Kong last year. Meanwhile, Affinity Equity Partners bought Australia's Primo Group and expanded the company's distribution in Asia before exiting to JBS last November.

Deloitte served as financial advisor to Ruprecht on the Hosen transaction.

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• Topics
• Consumer
• North America
• Greater China
• Buyouts
• China
• USA
• Consumer
• buyout
• Hosen Capital