ORLANDO, Fla., Bio-One Corporation (BICO) announced today that the company has signed an agreement to acquire a 51% interest in a Chinese herbal medicine company in Hebei Province. With reported 2003 revenues of $9 million, operating profit of $2.3 million and assets totaling $7 million, the company is an integrated business that includes research and development, manufacturing, sales and marketing.
Purchase terms include cash and convertible preferred stock priced at $2.00 and $2.50 per share, respectively, with lock-up terms regarding sale. The 760-employee business will continue to be run with its present management team. Closing is scheduled to occur upon the completion of the certified audits, which is anticipated to be within 90 days.
The company produces over 170 products in five categories including large and small capacity injection, powder injection, tablets and granules. With a balanced product portfolio, the business is the leader in Hebei Province in sales of large and small capacity injection products with a market share of about 75%. The company's products are marketed in over 20 provinces, cities and autonomous regions in China and are sold mainly through wholesalers and disease treatment institutes.
Bio-One President and CEO Armand Dauplaise said, "This will be our third step in establishing a presence in China. We are aggressively pursuing additional synergistic candidates in China as well as in North America that meet our criteria for profitability and revenue growth."
Bio-One announced in March an agreement to acquire 51% of a $20 million Chinese herbal medicine company with 2004 EBITDA of $4.2 million. That purchase is planned to close in the third quarter of 2004. Last month, Bio-One announced the purchase of majority control of WeiFang Shengtai Pharmaceuticals, a Shandong Province-based manufacturer and distributor of glucose that reported $16.3 million in revenue in 2003 and a net income of $2.3 million.
Bio-One Corporation is a nutritional supplements company serving the preventive and alternative healthcare segments. The company intends to acquire additional businesses in order to provide quality nutraceuticals to consumers through vertical integration of manufacturing, distribution and marketing. Current Bio-One subsidiaries include PNLabs, American Nutritional Exchange, Interactive Nutrition International, Nutrition Sciences Corp. and WeiFang Shengtai Pharmaceuticals Co. Ltd.