News 189 views last update:6 Aug 2012

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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