China Marine purchased 80% of the registered capital stock of Xianghe for $27.8m on 1 January 2010.
China Marine’s acquisition of Xianghe was finalised after management’s due diligence through December 2009. As detailed in a company press release, the acquisition plan included the transfer of an initial loan of $26.4m, which was owed by Xianghe to China Marine, to be the purchase consideration for the shares of Xianghe, and a final payment of $1.4m to the former sole shareholder of Xianghe within 30 days after completion of the audit report of Xianghe for the year ended 31 December 2009.
Xianghe’s flagship product, Hi Power algae-based soft drink, was developed by the Yellow Sea Fisheries Research Institute of Chinese Academy of Fishery Science in coordination with Xianghe’s founder, Qiu Shang Jing.
Hi Power is marketed as a high-protein drink, low in calories and fat, which provides the consumers a combination of immune system benefits, improved digestion and reductions in hyperglycemia and hypertension. Hi Power’s target market focuses on health-conscious consumers in China’s fast-growing beverage market.
As part of the acquisition, the management team of Xianghe and all associated sales and marketing staff will join the China Marine team. Collectively, the team plans to meet the strategic goals of Hi Power’s marketing strategy and also collaborate with China Marine’s Mingxiang-branded seafood-based snack food sales team to leverage China Marine’s current distribution in seven provinces and future distribution throughout China.
Source: PR Newswire
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