Tuesday, October 20, 2009

Carlyle Group to Spread China Fertilizer

The Carlyle Group invested in China Agritech, a fertilizer company, through a $15 million private placement. Reuters reported:

The proceeds from the private placement will be used for business expansion and working capital purchases.

China Agritech is excited about Carlyle's expertise, which is "dedicated to providing global resources and expertize to support China Agritech's further expansion." Will China Agritech's products come to America?

The company develops and makes liquid and granular organic compound fertilizers and related products. The have proprietary formulas. Are they rich with melamine, like infant formula that sickened hundreds of thousands or pet food that killed countless dogs and cats?

Funny, Carlyle recently invested in a Chinese infant formula company. The degrees of separation continue to shrink, as does product safety. Unfortunately, Carlyle's track record with quality isn't blemish free. We know their fertilizer (dung, offal) is spreading.

(The picture shows bags of melamine. As I don't read Chinese, I don't know the manufacturer.)