Shanghai Maling, a subsidiary of China’s Bright Food Group announced it has agreed to acquire a 50% stake in New Zealand meat processor, Silver Fern Farms for NZ$311 million (US$197 million).

 

The transaction is the latest in a string of overseas deals initiated by Chinese food companies as they maneuver to gain reliable sources of high quality meat, dairy, and other protein products to meet demand from the country’s growing middle class.

 

Shanghai Maling stated that the acquisition will nearly triple its revenues compared to last year, with revenues estimated to reach as high as 30 billion yuan (US$4.71 billion).

 

“Once this deal goes through, our company will quickly become China’s biggest consolidated lamb and beef industrial group,” Reuters reports Maling said in a statement to the Shanghai exchange.

 

For farmer-owned cooperative, Silver Fern Farms, which controls approximately 27% of New Zealand’s, beef and sheep meat export market, but has faced challenges in expanding its export reach, the deal gives the company access to Shanghai Maling’s substantial assets and China’s lucrative market.

 

Bright Foods, which is involved in processing foods ranging from pork to wine, has been very actively pursuing acquisitions in recent years. The group owns approximately 40% of New Zealand infant formula processor, Synlait, and had acquired British cereal maker, Weetabix and Australian dairy company, Mundella Foods among others.

 

Silver Fern Farms will use the funds gained from the deal to pay down its debt and expand its exports.