Sunner Group is acquiring the remaining 54% stake in Sun Valley—formerly Cargill’s poultry business in China—for CNY 1.1259 billion, valuing the company at CNY 2.086 billion as of 31 December 2024. In 2024, Sun Valley reported a net profit of CNY 172.92 million, reversing a CNY 382.11 million loss from the previous year. Revenue rose to CNY 2.853 billion, and retail sales of value-added products grew by over 80%. The acquisition has received full regulatory approval.
Sunner Group is set to acquire the remaining 54% stake in Anhui Sun Valley Food Technology Group Co., Ltd.—formerly Cargill’s white feather broiler business in China—following a recent audit and valuation. Based on the income approach, the company has been valued at CNY 2.086 billion as of the benchmark date, 31 December 2024.
The agreed transaction price for the outstanding shares stands at CNY 1.1259 billion, marginally below the equity’s appraised worth of CNY 1.12644 billion. The slight variance stems from a clause in the original agreement: if Sun Valley achieves a 2024 audited net profit of at least CNY 170 million, the price per equity unit cannot fall below 12 times the attributable earnings, and no more than CNY 112,590 million.
Financial Turnaround Sparks Valuation Surge
After a challenging year in 2023, Sun Valley posted a striking turnaround in 2024. Audited figures show a net profit of CNY 172.92 million—bouncing back from a CNY 382.11 million loss the previous year. Revenue reached CNY 2.853 billion, up from CNY 2.49 billion. As of year-end, the company reported total assets of CNY 1.688 billion and net assets of CNY 763 million.
From Cargill to Sunner: A Strategic Pivot
Located in Chuzhou, Anhui Province, the integrated Sun Valley site boasts an annual production capacity of 65 million broilers and 90,000 tonnes of processed meat. The facility serves major customers including McDonald’s and KFC.
Cargill offloaded the operation in May 2023 to DCP Capital, a private equity firm with a Greater China focus. Though the sale price wasn’t disclosed, DCP subsequently sold a combined 49% stake to Sunner Group and its deputy general manager Liao Junjie for CNY 249 million and CNY 16 million, respectively—implying a full-company valuation of less than CNY 550 million at that time.
Sunner highlighted that replicating such a facility from scratch would demand significantly greater capital and risk adding excess capacity to an already competitive landscape.
Efficiency and Brand Growth Drive Profitability
In December 2024, Sunner revealed plans to purchase the remaining 54% equity—51% from DCP Capital and 3% from Liao Junjie. Once finalized, Sun Valley will become a wholly owned subsidiary.
The group attributes Sun Valley’s financial resurgence to focused integration and lean management efforts. Since mid-2023, the company has increased slaughter volumes of white feather broilers by 29% while trimming meat processing costs by 15%–20%. Sales of branded, value-added products under the “Sun Valley” name have soared by over 80% in retail channels.
These operational gains have not only driven profitability but also contributed to a significantly higher valuation. According to Sunner, the income-based appraisal methodology captures the business’s enhanced efficiency, strong brand equity, and stable client portfolio—offering long-term earnings resilience.
China’s State Administration for Market Regulation has already greenlit the acquisition, opting not to pursue further antitrust review (Case No. 2025-91). This paves the way for Sunner Group to fully integrate the business and deepen its presence in the premium poultry processing segment.
AgriPost.CN – Your Second Brain in China’s Agri-food Industry, Empowering Global Collaborations in the Animal Protein Sector.
