NEW YORK – Paul, Weiss Mergers & Acquisitions Group, a global law firm specializing in financial transactions between companies around the world, announced on June 1, that Paul, Weiss is working with Beijing-based DCP Capital in a consulting capacity to execute the capital equity firm’s acquisition of Cargill’s poultry operations in China.
Cargill officials said the decision to sell was made, “After an extensive review of its portfolio and alternatives for the future of its poultry business in China.”
Terms of the deal with DCP were not disclosed. The transaction is expected to close later this year and is subject to regulatory approvals. Until the acquisition is finalized, Cargill will continue to operate the facilities, which includes approximately 3,000 employees.
“The transaction includes all Cargill Protein China entities in Chuzhou in the Anhui province, including farm locations and associated manufacturing sites,” Cargill said.
In 2019, Cargill announced the opening of the $48.8 million poultry plant in Chuzhou, to address growing demand for poultry in the country, which it expects to continue. Cargill said China is still an important market for its business, pointing out it has operated in the country for more than 50 years and plans to meet the demand for food and agricultural products in Asia well into the future.
“The transaction is designed to support the continuity of existing operations in the country, ongoing access for customers to the high-quality products and services in China, and sustainable growth for Chuzhou’s local community,” Cargill said.