American Oriental Bioengineering, Inc. (NYSE:AOB), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, announced Thursday that it has completed the acquisition of Guangxi Boke Pharmaceutical Company Limited. The all-cash acquisition, valued at US$36.5 million, was expected by the company to be immediately accretive to earnings.
Based in Nanning, GuangxiProvince, Guangxi Boke is a US$12 million (revenues) manufacturer and distributor of plant-based pharmaceutical, nutraceutical and personal care products. With it's primary market in China, the majority of Guangxi Boke's products are sold over the counter. It's product line includes nasal decongestants, medical shampoos and throat lozenges. The Company has a sales force of over 600 individuals and an 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.
American Oriental Bioengineering is a US$110 million (revenues) manufacturer and distributer of plant based pharmaceutical and nutraceutical products. For 2006 the company reported a doubling of revenues, and net profit margins of 26.5%. Currently trading near US$12.45, the company is down over 12% from its recent 52 week high, but has nearly doubled over the past year.