China's Rodobo to Expand Raw Milk Processing Capacity
Source: Rodobo International, Inc.
08/02/2010
Feb. 8 /- Rodobo International, Inc. announced its completion of the acquisition of three dairy companies in the People's Republic of China, through the mergers of Ewenkeqi Beixue Dairy Co, Ltd, Hulunbeier Beixue Dairy Co., Ltd, and Hulunbeier Hailaer Beixue Dairy Factory, hereinafter collectively referred to as "Beixue Group", into the Company's wholly owned subsidiary Tengshun Technology and Development Co., Ltd.
After the Acquisitions, Rodobo's daily processing capacity of raw milk is expected to increase by five folds, from the current 200 tons per day, to about 1,200 tons per day.
Pursuant to the Equity Transfer Agreements entered into on February 5, 2010, the Company paid RMB2,100,000 in cash and issued 10,600,000 shares of the Company's common stock (the "Common Stock") and 2,000,000 shares of Series A Preferred Stock in exchange for 100% of the equity interest in Beixue Group composed of Ewenkeqi Beixue, Hulunbeier Beixue and Hulunbeier Hailaer Beixue. Based on independent valuation reports issued by Beijing Haohai Tongfang Assets Appraisal Co., Ltd, dated as of February 4, 2010, Beixue Group has a total net asset value of over USD 30 million.
"We are extremely happy to complete the acquisition of Beixue Group," said Mr. Yanbin Wang, Chairman and CEO of Rodobo, "It is an exciting milestone for the long-term growth strategy of Rodobo. We believe this synergic acquisition will enable us to further consolidate our safe, secure and sustainable milk supply to keep pace with the growing demand of our milk powder products for the Chinese consumer. We expect that this acquisition will increase our distribution channels as well as production capacity." Mr. Wang concluded, "We view the acquisition of Beixue Group as a major opportunity to expand our brand and make further inroads into the milk product market in China."
Complete information regarding the acquisitions will be disclosed in the Current Report on Form 8-K to be filed by Rodobo with the Securities and Exchange Commission.
