AgFeed completes pig farm acquisitions
AgFeed Industries has completed the acquisition of 4 commercial pig farms previously announced on August 25, 2008.
It is estimated that these producing hog farms will contribute approximately
50,000 pigs annually to AgFeed. All of AgFeed’s acquired pig farms are
immediately accretive to its current year earnings. AgFeed paid on average less
than 2 times projected annual net income for these acquisitions.
Songyan
Li, Ph.D., AgFeed’s Chairman commented: “AgFeed currently benefits from
declining raw material costs and expanded profit margins in our pig production.
In addition, pig market price fluctuations in certain markets have created
golden buying opportunities for AgFeed as we are able to acquire quality
producing hog farms at lower valuation than before.
Acquisition
targets
We are seeing greater value in the marketplace and we have
identified multiple additional farm acquisition targets. With a strong balance
sheet and plenty of cash flow from operations, AgFeed plans to continue our hog
farm acquisition strategies throughout the rest of 2008.”
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