March 27, 2008

China's Yuhe Group buys US First Growth in reverse takeover

China-based poultry company Shandong Yuhe group has bought US-based First Growth Investor, Inc. in a US$18-million deal through its wholly-owned overseas subsidiary Bright Stand International, Ltd in a reverse takeover. 

The deal gives Yuhe Group  two subsidiaries - Yuhe Poultry Ltd. and Weifang Taihong Feed Co., Ltd. listed on the Nasdaq. The merged company also sold additional shares to several US-based private equity funds for US$21 million.

Yuhe Group, a private company incorporated in 1996, produces 200,000 tonnes of feed a year, slaughters 50 million broilers and produces 100,000 tonnes of chicken products.

Net sales revenue of hit US$16 million and has consolidated net income of around US$5 million in the first three quarters of 2007.