Yuhe International has purchased 10 breeder farms in Liaoning and Henan Provinces in China, expanding the company's production capacity by 43%, to 3.15 million sets of parent breeders.
The newly acquired area comes to 91 acres, including the buildings and breeding equipment for the breeder farms, as well as land lease rights for between 20 and 50 years. "We are very pleased to acquire the 10 new breeder farms in China as planned," said Yuhe Chairman and CEO Zhentao Gao. "The highlights of this acquisition lie in two aspects, one being that the company had gained access to a large quantity of breeding land with reasonable terms and the other being that we were able to retain a large number of experienced and skilled workers. Both factors are current bottlenecks to self-constructing such breeder farms."
Yuhe bought the farms for approximately US$16.4 million in a combination of cash and company stock.