Quick Take: Chinese Buyers Flock to British Duck Breeder

A unit of conglomerate Citic Group and a major Chinese agricultural firm will pay 1.5 billion yuan ($227 million) for British fowl specialist Cherry Valley Farms Ltd., marking a homecoming of sorts for a European company whose specialty is its brand of Pekin ducks.

The purchase by Citic’s agricultural arm and Beijing Capital Agribusiness Group Co. Ltd. also comes just a month after the former teamed with private equity giant Carlyle to buy the China-based stores of fast-food giant McDonald’s, as Citic tries to diversify beyond its traditional strength in financial services.

The duck deal marks the first major cross-border acquisition of a breeding operation by a Chinese buyer. No value was given at a ceremony to mark the transaction, but a knowledgeable source provided the 1.5 billion yuan figured to Caixin.

Founded in 1958, Cherry Farms calls itself the world’s leading supplier of its variety of Pekin duck, according to its website. In addition to its British headquarters, the company also has operations in China and Germany.

Beijing Capital Agribusiness Group was formed through the combination of several livestock companies. It has 66 billion yuan in assets and 40,000 employees, according to its website.

Contact reporter Yang Ge (geyang@caixin.com)