China Agri-Business, Inc. operates through China-based Shaanxi Xinsheng Centennial Agriculture and Technology Co. Ltd. to manufacture and sell non-toxic fertilizer, bactericide, and fungicide products used for farming in China. The company today announced that Shaanxi Xinsheng has acquired the managing and operational rights to agrochemical manufacturer Shaanxi Qinfeng Agrochemical Inc. (Qinfeng).
Shaanxi Xinsheng will manage Qinfeng’s operations from June 1, 2011, until December 31, 2013. Throughout the duration, Shaanxi Xinsheng is entitled to the net profits or losses from the operations of Qinfeng. Qinfeng’s estimated annual revenue is currently approximately $13.9 million.
The deal gives Shaanxi Xinsheng the rights to: use Qinfeng’s production facilities and brands, to hire and dismiss employees, to file all applicable registrations with government authorities, and to coordinate with third parties in connection with technical development and production.
Liping Deng, CEO, president and director of China Agri-Business, noted Qinfeng’s tangible and intangible assets, and said the acquisition will allow his company to rapidly grow its product mix to drive sustainable growth.
“We are very pleased to have this great opportunity to manage the operations of Qinfeng. Qinfeng has a total of 43 products, licenses or permits registered with Chinese government authorities. Among these products, two agrochemical products, diafenthiuron and prochloraz, are important raw materials for many lower-toxicity pesticide products. Both diafenthiuron and prochloraz products may be sold in domestic markets or exported to European and South-Eastern Asia markets.” Deng stated in the press release. “We believe that acquiring the management and operating rights will enable us to expand our product mix quickly and to maintain a sustainable long-term growth. We hope that we will have the opportunity to acquire Qinfeng’s business, including assets and intangible assets, in the future.”
Shaanxi Xinsheng paid Qinfeng approximately $185,000 on June 14, 2011, to initiate the deal. From January 1, 2012, to December 31, 2013, Shaanxi Xinsheng must pay installments of approximately $185,000 in January and July of each year.
For more information visit http://www.chinaagri-business.com