Deployed managers and executives from its M2P2
subsidiary to lead the restructuring and return to profitability of the legacy Chinese hog production system;
In connection with the acquisition of M2P2
AgFeed has changed significantly from a company focused on China to an international company presented with global growth opportunities.
In addition, Glenn McClelland, the current President & CEO of the Company's US based hog production business, M2P2
, has been appointed our Chief Operating Officer, while Clay Marshall, the current CFO of M2P2
, has been appointed our Chief Financial Officer.
The M2P2 team will add a wealth of experience and resources to our hog production team and will put our combined business in a position to pursue growth opportunities on an international basis.
Junhong Xiong, AgFeed's President stated, "The acquisition of M2P2 presented AgFeed with an unique and compelling opportunity to add a significant and profitable operation on a fair and favorable basis as measured by M2P2's book value, profitability and cash flow.
Certain statements regarding AgFeed Industries and/or M2P2 set forth in this press release, including those regarding the completion of the transaction, contain forward-looking information and speak only as of the date of such statement.
Nasdaq: FEED, NYSE Alternext: ALHOG), one of the largest independent hog production and animal nutrient companies in China, announced today that it has agreed to definitive terms for the acquisition of the operations and assets of M2P2 LLC based in Ames, Iowa.
The aggregate consideration AgFeed expects to pay to acquire M2P2 is $26 million, subject to adjustment based upon the book value of M2P2's assets, of which approximately 49% will be paid in cash and approximately 12% in AgFeed common stock with the balance being in the form of a 10-year seller note.
Songyan Li, AgFeed's Chairman, stated, "Through our work together in AFIPT we have developed enormous respect for M2P2 and its team of professionals.
The aggregate consideration AgFeed expects to pay to acquire M2P2 is $16 million, subject to adjustment based upon the book value of M2P2's assets, of which 80% will be paid in cash and 20% in AgFeed common stock.
Gerry Daignault, Chief Operating Officer, commented, "Our joint venture partner M2P2
will direct the process of designing and building the facilities in Xinyu, just as they are currently doing in DaHua.