October 16, 2017

United Food to acquire majority stakes in China animal feed companies

United Food Holding has solidified its presence in China by buying 80% stakes in three animal feed companies based in the country, the company announced in early October.

The acquisition amounted  to CNY120 million (US$18.2 million) in cash and convertible bonds, The Business Times reported. Purchases will be made using internal resources.

United Food, a soybean and animal feed supplier, will pay each company CNY35 million (US$5.3 million) in cash.

The companies, which are part of United Food's acquisition, include Chengde Purun Shengwu Zhiyao Co, which makes animal feed with traditional Chinese medicine extracts; Hebei Xingrun Shengwu Keji Gufen Co, which develops food and animal feed additives and cosmetics, and sells medical equipment; and Benchmark Ltd, an investment holding company that holds a licence from Hebei Xingrun Shengwu to make antioxidant chemical L-Ascorbyl Palmitate.

- The Business Times