Biostime International, a China-based manufacturer of pediatric nutritional and baby care products, is set to acquire 100% stake in Changsha Yingke Nutrition Products, an infant formula producer for CNY350m ($57.2m).
As per the equity transfer agreement, BiosTime and Biostime Health Products, the subsidiaries of Biostime International, will acquire the equity interest in Changsha Yingke from Hunan AVA Dairy and Hunan Changsha AVA Dairy.
Following the acquisition, the company will boost its production capacity for its new milk powder of ADIMIL series.
This transaction will add 30,000 tons to 50,000 tons of annual infant formulas milk powder production capacity to the company.
According to the company, the new ADIMIL series milk powder is expected to be launched in 2014 across fourth- and fifth-tier cities in the country.
