July 7, 2010 (FinancialWire) — American Lorain Corp. (AMEX: ALN), a processed snack foods and convenience foods manufacturer, said it has signed a letter of intent to acquire Shandong Greenpia Foodstuff Co., Ltd., a manufacturer of retail-packaged, Korean-style kimchi cold dishes.

On June 28, International Lorain Holding Inc. and its operating subsidiary, Junan Hongrun Food Co. Ltd, signed a LOI to acquire 100% ownership of Shandong Greenpia Foodstuff Co., Ltd.

The acquisition will include cash and stock offer of $2.1 million in cash and 731,707 shares of American Lorain common stock, respectively. The company is scheduled to complete the equity exchange and obtain governmental approval on the acquisition on or before September 30.

Shandong Greenpia's 2009 posted sales revenue was around $1.5 million, which American Lorain said it expects to double after the acquisition is complete. American Lorain has tentatively forecasted $3 million in sales for 2010 as a result of expanding Greenpia's distribution and sales to 500 additional distributors in Lorain's network.

The company said it will market Greenpia's proprietary brand, "Cai Gen Jie," and also brand several Greenpia products under the Lorain brand. Greenpia's production lines will remain in operation at Greenpia's facilities and thus American Lorain will have a total of two kimchi-style cold dish production lines with annual capacity of 3,500 metric tons.

Nevada-based American Lorain develops, manufactures and sells various food products. The company's products include chestnut products, convenience food products and frozen food products. It currently sells over 230 products to 26 provinces and administrative regions in China as well as to 42 foreign countries.

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