June 22, 2010 (FinancialWire) — Yongye International, Inc. (NASDAQ: YONG), a manufacturer, developer and distributor of "Shengmingsu" brand plant and animal nutrient products in China, said that it has entered into an agreement to acquire the Shengmingsu distribution network from its provincial level distributor in Hebei Province, which is solely comprised of a customer list.

The company said it will pay $3 million in cash and issue 3.6 million shares of common stock to the seller to fund the transaction. The acquisition is scheduled to close on July 1, 2010.

Yongye said that the customer list is comprised of all of the county-level distributors who sell the company's Shengmingsu plant and animal nutrient products to over 2,700 independently-owned Yongye branded stores located in Hebei Province, which is Yongye's largest regional market in China, representing around 30% of the company's revenues in 2009.

Previously, in Hebei Province, Yongye sold its products to its provincial-level distributor who then resold those products to lower level distributors and on to the independently-owned Yongye branded stores.

Over the next 12 months, the company expects to generate around $6.7 million of additional revenue and $5 million of additional net income from the acquired customer list. Yongye said it also expects its gross margin in Hebei Province to increase to around 60% compared with around 53% in 2009 as a result of the acquisition.

China-based Yongye International is a Chinese agricultural nutrient company with its production facilities located in Hohhot, Inner Mongolia, China.

Real-time, streaming research for companies and funds mentioned in FinancialWire(tm) news is available via the Investrend Research Syndicate (at http://investrend.stocksmart.com/ss/html/hpcompany.html). Current valuation analysis research for companies and funds mentioned in FinancialWire(tm) news is available via the Investrend Research Syndicate (at http://www.valuengine.com/rep/searchsrep?pid=42&srchfor=).

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public other companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (at http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation from subject entities, companies, equities, or representatives thereof, for its news, opinions or distributions. Further disclosure is posted at the FinancialWire(tm) website (at http://www.financialwire.net/disclosures.php and http://www.financialwire.net/2010/04/23/safe-harbor/). Additional resources for investors are also accessible via the FinancialWire(tm) website (at http://www.financialwire.net/2010/04/23/investor-resources/). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Copyright © MMX, FinancialWire(tm); All rights reserved.

[hlmsmlh] [nwdlsldw] [chnchn] [ndnsndnsndns] [agrcltrtlc] [frmrnchcmrf] [btnwswntb] [ntrntnlcmpnsbsnss]

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.