AgFeed completes hog farm Acquisitions
AgFeed Industries, have announced the completion of
the acquisition of 4 commercial hog farms previously announced on August 25,
It is estimated that
these producing hog farms will contribute approximately 50,000 hogs annually to
AgFeed. All of AgFeed's acquired hog 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 hog production. In addition, hog 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
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."
â€¢ Agfeed Industries
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