Farms: Yuhe Acquires Ten Breeder Farms in Liaoning and Henan Provinces in China

Yuhe International (YUII) announced that its wholly owned subsidiary Weifang Yuhe Poultry Co., Ltd. entered into a series of asset purchase agreements to purchase ten breeder farms in Liaoning and Henan Provinces, China, for an aggregate purchase price of RMB 108,686,716, or approximately USD 16.4 million. The ten breeder farms are purchased from six individuals engaged in large-scale parent breeder raising businesses in China, where eight breeder farms are in Liaoning Province, and two are in Henan Province. The acquisition will expand YUII's production capacity by 43% to 3.15 million sets of parent breeders, which the company believes will position it further ahead of its competitors. 20% of the acquisition consideration is to be paid in YUII's common stock. This is the second time YUII has conducted stock-and-cash acquisition. YUII is trading at a price of $9.00 per share, early Tuesday on the news.