Huifeng Acquires Rutin Maker Shangqiu Kexin
Chinese raw materials producer Huifeng Bio-Pharmaceutical Technology (OTC: HFGB) has agreed to acquire 90% of Shangqiu Kexin Rutin Processing, a local rutin manufacturer in Henan Province, in a share and cash deal worth $1.75 million .
As part of the acquisition, Huifeng offered Kexin 2.3 million restricted shares of the company's stock, worth $0.7 per share and $0.14 million in cash.
Kexin's average annual profit is expected to be $650,000 in the next three years.
"With the addition of Kexin's diverse rutin products, Huifeng will be able to offer a full range of rutin series products to our customers, which will definitely leverage Huifeng's brand recognition as the largest Rutin producer in China and a prominent generic pharmaceutical company in many other markets," said CEO of Huifeng Jing'an Wang.
Huifeng, based in Xi'an, China, develops and produces plant extracts and raw materials for use in pharmaceutical, nutraceutical and food production. It is a producer of rutin, a type of plant-derived chemical with medicinal properties, and other related chemicals.
Huifeng expects the transaction to close within a month.
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