Germany-based dairy company Theo Mueller’s private equity affiliate has backed a $45m funding round for a Chinese dairy three years after a milk safety scandal poisoned some people.
Mueller Milch Management has backed Huaxia Dairy alongside Olympus Capital Holdings Asia, a private equity firm.
Mueller Milch will invest $10m, while Olympus will invest $30m and previous investors in Huaxia will invest $5m.
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."
Huaxia´s first round was led by California Technology Ventures and it was founded in 2004.
Huaxia has more than 7000 cows and targets production of 10 tonnes per year per cow.
The company supplies major Chinese dairy companies and it also produces its own products Wondermilk and Wonderyogurt. Mueller Milch Management is the private equity firm of the businessman Theo Mueller, the 100% owner of the company of the same name.