Chinese milk powder maker Rodobo International has acquired of three dairy companies in the country.
The companies – Ewenkeqi Beixue Dairy Co., Hulunbeier Beixue Dairy Co. and Hulunbeier Hailaer Beixue Dairy Factory – have been absorbed into Rodobo subsidiary Tengshun Technology and Development Co.
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After the acquisitions, Rodobo’s daily processing capacity of raw milk is expected to increase by five fold, from the current 200 tonnes per day, to about 1,200 tonnes per day.
Rodobo paid CNY2.1m (US$307,575) in cash and issued 10.6m shares of the company’s common stock as well as 2m shares of Series A Preferred Stock in exchange for 100% of the equity interest.
Based on independent valuation reports, Rodobo said the three groups have a combined net asset value of over US$30m.
“We are extremely happy to complete the acquisition of Beixue Group,” said Yanbin Wang, chairman and CEO of Rodobo.
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By GlobalData“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.”
Wang added that the company expects the acquisition to expand its distribution channels as well as production capacity.
“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,” he said.
