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Yongtai Tech to acquire 85% of shares in Jiangsu Subin at USD26.2 millionqrcode

Jul. 20, 2018

Favorites Print Jul. 20, 2018
By Think Real - On 26 June 2018, Zhejiang Yongtai Technology Co., Ltd. (Yongtai Tech) signed an Equity Transfer Agreement with Ningbo Yongcheng Suhe Investment Partnership (Limited Partnership). It intended to acquire 85% of shares (= USD9.8 million) in Jiangsu Subin Agrochemical Co., Ltd. (Jiangsu Subin) using its own funding of USD26.2 million.
 
Jiangsu Subin, founded in May 1990, is mainly involved in the processing of biopesticides and pesticide formulations and self-run exports of pesticides. So far it has obtained 46 pesticide registration certificates and has applied for 9 patents. Its products are exported to many countries and territories. Financially, it made revenue of USD68.6 million and net profit of USD1.5 million in 2017; from January-March 2018, the figure was USD18.3 million and USD0.5 million respectively.
 
"Pesticide is a special product category. They may be restricted to enter many industries," stated Yongtai Tech, "In recent years, Jiangsu Subin has made significant investments to complete all technical materials related to its products. The materials may help foreign clients to register the pesticides rapidly and enrich their product lines. Jiangsu Subin's increasing registrations of pesticides are all valuable resources."
 
The acquisition of Jiangsu Subin will enable Yongtai Tech to build a complete supply chain from pesticide intermediates to pesticide technical and formulations. It is a good try and an active exploration by the company to extend its business into the downstream pesticide field. Jiangsu Subin is equipped with relatively complete production facilities and corresponding environmental devices, in addition to the significant geographical advantages. It may be a new source of profits to the company: it will help enrich the company's product line, so as to increase the sales and profits.
 

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