Innovating for Long-Term Success
Continental Capital Limited, Arlon's affiliate in Asia, makes direct investments in private companies throughout Asia, with a focus on China. Continental Capital takes a long-term, value-added view on its investments and targets emerging, high-growth food and agribusiness firms in China and select developing Southeast Asian countries.
Continental Capital seeks to capitalize on Continental Grain Company's early entry into China in 1981 and its leadership in introducing modern agricultural practices in China. Continental Grain and Continental Capital operate today as a complementary hybrid operating/investment company. The operating team grows its businesses both organically and by pursuing strategic relationships in animal protein-based businesses in China. Simultaneously, the investment team, with the involvement of the operating team, invests alongside management teams of food and agribusiness companies and supports their growth by leveraging Continental Grain's and Arlon Group's global food and agribusiness expertise, network and investment skill set.
The following factors drive our investment strategy:
- China is a major demand center for food and agriculture as a result of the country's large population and growing middle class;
- Asian countries are looking for best practices to improve domestic production of food and agriculture by increasing cultivated land and livestock production; and
- Asian countries are implementing better food safety and security
Continental Capital Limited believes these improvements and innovations and continued demand for agricultural products can create numerous investment opportunities.
Sample Investment Criteria
Arlon has the flexibility to consider investments outside the parameters below, and Arlon's investments may not meet the criteria as described herein.
- EBITDA greater than $3mm
- Cash flow positive
- Equity check: typically $10-40mm, although, for the right opportunity, we will invest more or less