SkyPeople Fruit Juice Acquires Yingkou Trusty Fruits Co. to Expand Production Capacity
Prior to the acquisition, Xi'an Dehao Investment & Consulting Co., Ltd (Dehao) held 100% ownership interest in Yingkou Trusty Fruits Co. On November 18, 2009, SkyPeople's wholly-owned subsidiary, Shaanxi Tianren Organic Food Co., Ltd (Shaanxi Tianren), entered into a stock purchase agreement with Dehao to purchase 100% ownership interest in Yingkou.
30 Nov 2009 --- SkyPeople Fruit Juice, Inc., a processor and manufacturer of concentrated apple, kiwifruit, pear and other fruit juices and fruit products in the People's Republic of China, announced that it has acquired 100% ownership of Yingkou Trusty Fruits Co., Ltd. located in Yingkou, Liaoning Province, for an aggregate purchase price of approximately US$3.3 million (RMB 22.7 million). This acquisition will expand SkyPeople's annual concentrated apple juice production capacity by approximately 10,000 tons to 20,000 tons.
As of June 30, 2009, SkyPeople had made an initial upfront cash payment of approximately US$2.9 million (RMB 20.0 million) pursuant to a letter of intent between Tianren and Dehao. SkyPeople will pay the remaining US$395,547 (RMB 2.7 million) in cash by November 25, 2009.
In 2009, SkyPeople began production of concentrated apple juice in August and by the end of the third quarter had reached its full capacity. In the third quarter of 2009, the total revenue from SkyPeople's apple-related products increased by 184% year-over-year to approximately $1.0 million.
Prior to the acquisition, Xi'an Dehao Investment & Consulting Co., Ltd (Dehao) held 100% ownership interest in Yingkou Trusty Fruits Co. On November 18, 2009, SkyPeople's wholly-owned subsidiary, Shaanxi Tianren Organic Food Co., Ltd (Shaanxi Tianren), entered into a stock purchase agreement with Dehao to purchase 100% ownership interest in Yingkou.
Mr. Yongke Xue, CEO of SkyPeople said, "We are ramping up our capacity to capitalize on potential apple juice concentrate opportunities. The completion of this acquisition puts us on track to secure additional revenue. We gain significant competitive advantage with expanded production facilities strategically located in Liaoning Province, which is known to produce the largest amount of high acidity apples in China, and we are well positioned to capture additional apple fruit juice concentrate market share."
