NEW YORK, Oct. 18 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB) ("AOBO"), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, today announced that it has completed the acquisition of Guangxi Boke Pharmaceutical Company Limited ("Boke"). The purchase price for this all cash transaction is approximately USD$36.5 million (RMB 274 million) and the acquisition is accretive immediately upon closing.
Boke is located in the city of Nanning in the Guangxi province of China and was founded in 1995. Boke manufactures and distributes plant-based pharmaceutical, nutraceutical and personal care products, marketed primarily in China, with the majority of its products sold over-the-counter. The Company's major revenue generating product line alleviates nasal congestion and provides sinus relief, and is available in spray, tablet, capsule and granule formulations. Other products include a medical shampoo product approved by China's Ministry of Health to treat dandruff, as well as lozenges to alleviate sore throat symptoms. In 2006, Boke generated revenues of approximately USD$12.0 million (RMB 91 million) and was profitable. Boke's manufacturing facility in Nanning is a GMP certified manufacturing facility. The Company has a sales force that exceeds 600 individuals and an expansive distribution network of primarily pharmacies throughout China.
Tony Liu, Chief Executive Officer of AOBO stated, "We are very pleased to close this transaction. Boke has an exciting portfolio of products, including its nasal congestion and sinus relief products, that can be used by a large segment of the population in China. This acquisition further diversifies our product offering, provides added consistency to our revenue stream and allows us the opportunity to strengthen our OTC distribution network in China."
"As we move forward, we intend to select Boke's most promising and profitable products to leverage across our large distribution network. We see the opportunity to further strengthen Boke's product line, improve operating efficiency, and maximize pricing for their leading products. We are eager to integrate our latest acquisition into AOBO's corporate culture and look forward to their many contributions to our business in the years to come," concluded Liu.
The monetary exchange rate used for this transaction is US$1.00 : RMB 7.51.
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering is a leading, fully integrated, plant based pharmaceutical and plant based nutraceutical company dedicated to improving health through the development, manufacture and commercialization of modernized plant based products in China.
Safe Harbor Statement
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
|SOURCE American Oriental Bioengineering, Inc.|
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