AgFeed Industries Inc. will acquire Ames, Iowa-based hog production company M2P2 LLC, according to Meatingplace.com. AgFeed will reportedly pay an estimated $16 million as the firm bolsters its Chinese operations. The deal is expected to be finalized later this summer.
AgFeed said it expects M2P2, already a joint venture partner in AgFeed International Protein Technology Corp, to bring science-based management practices and technologies to China as the country tries to industrialize and commercialize its hog production industry. M2P2 also will build new western-style farms and two slaughterhouses in the Nanning/Dahua and Nanchung/Xinyu areas.
“M2P2’s dedication to continuous performance improvements in the hog production industry has resulted in impressive performance metrics in sow productivity and feed conversions,” said Songyan Li, AgFeed chairman. “For both AgFeed and M2P2 this is a transformational opportunity to position our combined businesses to achieve superior growth and earnings on an international basis as we respond to global market opportunities.
AgFeed credits M2P2 as having excelled in innovation, productivity and efficiency in pork production. With sow operations in Colorado, Oklahoma and North Carolina, and finishing operations in Iowa, M2P2 will produce some 1.3 million pigs per year. Upon completion of the transaction, John Stadler, chairman of M2P2 would join AgFeed’s board of directors.