MSPEA-backed Feihe International buys Alf Beta Dairy

Alf Beta Dairy, which was founded in 2008, will operate its baby formula distribution business independently from Feihe, according to a statement.

The acquisition - made by Feihe Dairy, a wholly-owned subsidiary of Feihe International - is expected to boost the company's brands and expand its distribution channels into southern China.

Feihe International was set up in 1962. It has more than 200 company-owned milk collection stations, six production facilities with an aggregate milk powder production capacity of about 2,020 tons per day, and a distribution network that reaches over 80,000 retail outlets throughout China.

The company was one of the first to go public in the US via a reverse takeover in 2003. It came to prominence for a brief period following the melamine scandal in 2008 - when tainted milk products claimed the lives of six infants and hospitalized hundreds more - as one of few Chinese dairy companies not implicated in the scandal.

In 2012, MSPEA teamed up with the chairman and CEO of Feihe to make a buyout offer for the US-listed company. The bid was was approved last year and the company subsequently de-listed.

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• Topics
• Greater China
• Consumer
• Buyouts
• China
• M&A
• Morgan Stanley Private Equity Asia
• Consumer