Olympus Capital Asia

Sanhe, Hebei, China, 12 July 2011 – Olympus Capital Holdings Asia (“Olympus Capital”) today announced that it will lead an investor group that includes Mueller Milch Management (“Mueller Milch”), one of the leading European producers of dairy products, to invest US$45 million for a significant minority stake in Huaxia Dairy Farm Limited (“Huaxia Dairy”), a high-quality milk producer in Sanhe, which is in the Hebei province of China. Olympus Capital is a regional middle market private equity firm with 14 years of experience investing across Asia and deep expertise in the agribusiness sector. Huaxia Dairy owns and operates one of the leading and largest dairy farms in China. Olympus Capital will contribute US$30 million, Mueller Milch will invest US$10 million and previous investors in Huaxia Dairy will invest US$5 million. The investment proceeds will be used by Huaxia Dairy to fund capital expenditures and pursue expansion opportunities.

Nan Shao, Executive Director of Olympus Capital in Shanghai, said, “We have been investing in Asia for the past 14 years and have significant experience in agribusiness. Boosting domestic consumption is a key part of China’s 12th Five-Year Plan and this investment offers Olympus Capital an opportunity to contribute to the rapidly-growing dairy market in China and to help meet the rising demand for premium dairy products resulting from the nation’s increased purchasing power. Huaxia Dairy has established a strong track record over the past seven years of producing milk and dairy products that meet world class standards from their large-scale farm near Beijing. Olympus Capital will help Huaxia Dairy to replicate this successful model with additional farms to increase overall milk supply and further capitalize on the growth in this sector.”

Dr. Bernd Pfister, Managing Director of Mueller Milch Management, said, “China represents one of the most exciting dairy opportunities in the world. We are proud to be part of it. High quality dairy products are our ambition and Huaxia Diary is the best company we have found in this space.”

Charles Shao (no relation to Nan Shao), Chairman of Huaxia Dairy, said, “With dairy consumption per capita in China still on the low side, the opportunity for growth in this sector is significant. The expanding middle class in China will continue to drive demand for high-quality milk. Our partnership with Olympus Capital and Mueller Milch will enable us to invest further in technology to enhance our productivity and deliver greater volumes of the natural, safe fresh milk and dairy products of the highest quality that Huaxia Dairy is known for, to our customers in China. As a strong regional player, we will continue to focus on the Beijing and Tianjin markets for now, as well as on the upstream supply of raw milk, since that is a space where Huaxia Dairy has real differentiation, in terms of technology, systems and the strong industry relationships we have cultivated since inception.”

Huaxia Dairy was established in 2004 by a group of entrepreneurs focused on creating a world class dairy farm in China. Its first round of institutional investment was led by California Technology Ventures. Located in Sanhe, one hour east of Beijing, the farm’s herd size has reached over 7,000 cows and targets milk production of over 10 tons per cow per year compared with the average industry production of 4.8 tons per cow per year. The milk produced at Huaxia Dairy meets world class standards and is used to supply major dairy companies in China for their premium products, as well as for the production of Huaxia Dairy’s own high-end brands – Wondermilk and Wonderyogurt. 

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About Olympus Capital

Olympus Capital Holdings Asia is a leading regional middle market private equity firm focused on Asia. Since its foundation in 1997, Olympus Capital has successfully invested approximately US$1.4 billion on behalf of its funds and co-investors in over 30 portfolio companies throughout Asia, including China, India, Japan and South Korea. Olympus Capital’s target sectors include agribusiness and food, renewable energy and environmental services, and business and financial services. The firm has a team of experienced investment professionals and advisors located in Hong Kong, Shanghai, New Delhi, Seoul, Tokyo and New York. In addition to helping companies grow in their home markets, Olympus Capital seeks to leverage its regional platform to help its portfolio companies drive cross-border expansion. Olympus Capital's global investor base includes leading pension funds, financial institutions, endowments and family offices from North America, Asia, Europe and the Middle East.

About Mueller Milch Management

The group Theo Mueller GmbH & Co. KG is the biggest privately held dairy in Germany and is represented in numerous other European countries and Israel. Over 4700 employees have achieved a turnover of 2.2bn Euro in the last year. Theo Mueller, the sole owner of Theo Mueller GmbH & Co. KG, lives in Switzerland and uses Mueller Milch Management as his private equity investment arm.

About Huaxia Dairy Farm

Huaxia Dairy Farm Limited operates one of the largest progressive corporate dairy farms in China, and is a leading producer of high-quality raw milk in the Beijing-Tianjin region, based in Sanhe of Hebei province, China. Established in 2004, the company is known for its extensive deployment of modern advanced technology to ensure a spotless safety record and quality milk that surpasses international standards. Apart from supplying dairy processing companies with milk, Huaxia Dairy also has a retail presence with Wondermilk and Wonderyoghurt. Through collaborative partnerships with strategic industry players both in China and overseas, Huaxia Dairy aims to contribute to the advancement of the dairy industry in China through various aspects of modern technology transfer; raising the standards of animal healthcare, veterinary practice and training; improving dairy herd genetics and feed structure; as well as introducing precision laboratory testing and traceability.  

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