Carlyle Group buys into Chinese baby milk industry

The Carlyle Group, a US private equity firm, acquired a 17.3% stake in one of China’s largest baby-milk manufacturing companies, the Wall Street Journal reported. Carlyle has become the latest private equity firm to enter China’s dairy industry, buying into the Guangdong-based Yashili Group for an undisclosed amount. Carlyle hope to improve research and development at the company and improve quality control. Patrick Siewert, senior director of Carlyle Asia, said: "The infant-formula market in China is undergoing a positive transformation and is set to continue its strong growth trend." Despite recent high-profile investments, China’s dairy industry is still struggling to recover from last year’s melamine scandal.