KKR said on Tuesday it is buying 14% of China’s largest chicken meat farmer Fujian Sunner Development for $400 million as demand for safe food spikes amid scandals.
Sunner, the chicken meat supplier to the 2008 Beijing Olympic Games, breeds, processes and supplies chicken meat to China's fast food industry, food manufacturing industry and meat wholesale markets, according to the statement.
KKR’s investment comes as another food scandal roils the market. McDonald’s briefly suspended sales of chicken nuggets in China after a local unit of OSI Group allegedly sold it out-of-date meat.
Through its vertically integrated facilities, Shenzhen-listed Sunner has oversight of...