CHINA: SkyPeople Fruit Juice acquires apple juice facility
SkyPeople Fruit Juice, a leading processor and manufacturer of concentrated fruit juice products, has acquired full ownership of Huludao Wonder Fruit Co for RMB48.25m (US$6.94m).
Huludao Wonder, located in Liaoling province, will serve as the core manufacturing and processing facility for apple juice concentrate for the company. The area is noted for its high acidic apple, which produced 7,208 tons of concentrated apple juice in 2007.
As of 30 May 2008, the total assets of Huludao Wonder was approximately $15.7m.
"Our completion of the acquisition of Huludao Wonder enhances our ability to participate in the expanding international demand for apple juice concentrate," said Yongke Xue, CEO of SkyPeople. "It is anticipated that the acquisition will decrease our administrative expenses and enable us to more efficiently utilise our internal resources."
Prior to the acquisition, Huludao Wonder was a direct subsidiary of a related party of Shaanxi Hede Venture Capital.
On 1 June 2007, SkyPeople entered a contractual agreement with Hede to lease all the assets and operating facilities of Huludao Wonder for one year. In accordance with the US GAAP accounting practices under FIN 46R, the company consolidated Huludao Wonder's operations into its financial results. Huludao Wonder contributed approximately $8m in revenue during the six months ended 31 December 2007.
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