China Organic Agriculture Inc. (CNOA.OB) Announces Completion of Strategic Acquisition to Gain Foothold in China’s Agricultural Market
Source: http://Blog.QualityStocks.net/?p=13214Posted on Friday, October 31st, 2008 | In Small & Micro Cap
China Organic Agriculture Inc. (OTCBB: CNOA) trades agricultural products in China and has established a business plan that will enable it to capitalize on China’s growing consumer class. The company today announced the $10.6 million acquisition of 60% of Dalian Huiming Industry Ltd., a major agricultural trading company with a wide distribution, which will allow China Organic to boost its distribution capabilities.
“The completion of this acquisition marks an important milestone in the history of China Organic Agriculture,” Jinsong Li, China Organic’s CEO stated in the press release. “We’re now able to focus on the successful integration of Dalian Huiming into CNOA’s operations, allowing us to expand distribution channels and diversify our product offerings.”
As one of the top-tier agricultural trading companies in the Northeast provinces of China, Dalian Huiming focuses on China’s major agricultural products, including soybeans, corn and cereal crops. The company’s success helped it achieve revenue of $40.2 million for 2007 and net income of $2.7 million, four times that of 2006.
Through the acquisition, Organic Agriculture anticipates benefiting from Dalian Huiming’s position in China’s consumer market through the expansion of its line of products and operating efficiencies.
“The highly synergistic acquisition of Dalian Huiming dovetails perfectly into our expanded business model,” Li stated. “We believe our plans to distribute soybeans and mushrooms under the recently acquired ‘Xiaoxinganling’ brand name will greatly benefit from China Organic’s enhanced reach and influence through Dalian Huiming.”
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Agricultural Products, China, China Organic Agriculture Inc., Dalian Huiming Industry Ltd., Jinsong Li, Small & Micro Cap, USD
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