China Green Agriculture Acquires Beijing Gufeng Chemical Products
China Green Agriculture said it has closed the acquisition of Beijing Gufeng Chemical Products (Gufeng) and its only wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer (Tianjuyuan).
China Green Agriculture acquired 100% equity interest in Gufeng for approximately $8.8m in cash and an aggregate of 2,275,931 newly issued shares of common stock of the Company to Gufeng shareholders.
The acquisition is expected to increase China Green's fertiliser production capacity to 355,000 metric tons per year (MTs/y) from 55,000 MTs/y and expand its product line and distribution network, according to Reuters.
China Green Agriculture chairman and CEO Tao Li said Gufeng will contribute at least $10.6m in net income for the fiscal year ending 30 June 2011.