KKR invests in China’s Gambol Pet Group

The GP is investing through its China Growth Fund, which closed at $1 billion in 2010. Further details of the transaction were not disclosed.

Headquartered in Liaocheng, Shandong province, Gambol is one of the largest pet food exporters in China, supplying products including dry food, wet food, real meat jerky treats and dental bone to overseas markets. In China, it sells pet food products under the Myfoodie brand.

Referencing studies conducted by the China Feed Industry Association, Gambols claims to be the largest retailer in the pet treat category and a leader in the dry food category. The company has six production facilities in China and one in Thailand.

The pet category has seen compound annual growth of more than 30% in the past few years, according to Goumin.com. However, the market is still fragmented and has potential for further growth. Only 13% of Chinese urban households have pet dogs, compared with 36% in the US. Meanwhile, packaged pet food penetration in China is 14%, compared to more than 90% in the US.

“Gambol is well-positioned to capture new opportunities in the pet food sector globally and in China given Gambol’s extensive industry expertise, product innovation capabilities and long-term commitment to producing safe, high-quality pet food,” Chris Sun, a director at KKR China, said in a statement.

Following the investment, the GP will help expand Gambol’s production capabilities in China, Thailand, Europe and the US. The company also expects to leverage KKR’s experience in food production and in implementing best practices in food safety.

KKR previously had made several investments to address food safety issues in China, including Modern Dairy, Asia Dairy (a joint venture with Modern Dairy), COFCO Meat, Sunner Development and Yuehai Feed Group.

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• Topics
• Greater China
• Consumer
• Expansion
• China
• KKR
• Growth capital