June 26, 2008
AgFeed acquires Hainan's largest premix feed company
AgFeed Industries Inc., a leader in China's premix feed and hog raising industries, announced that it has acquired for cash 100 percent ownership of the largest premix feed company, Hainan Hopejia Feed Co., located in China's southern Hainan province.
AgFeed, which already owns several hog farms in this region, expects the acquisition to be immediately accretive to 2008 earnings. This acquisition provides AgFeed with its fifth premix feed manufacturing plant in China.
"This acquisition immediately positions AgFeed as the largest premix feed producer in Hainan and establishes an effective platform for AgFeed to further expand our hog production business in this region," said Dr. Li Songyan, chairman of AgFeed.
AgFeed has two profitable business lines, premix animal feed and hog production. The company is also China's largest commercial hog producer and premix feed company in terms of revenues.