Laiyang Jiangbo, controlled by Jiangbo Pharmaceuticals through contractual arrangements, is buying out Xinkangqi, which distributes a number of its products at present.
The CEO of Jiangbo, Linxian Jin, anticipates “achieving meaningful synergies by vertically integrating manufacturing operations with Xinkangqi’s distribution business after the transaction is closed.”
Furthermore, Jiangbo is planning “additional acquisitions in the fragmented distribution sector.”
Laiyang Jiangbo has agreed to keep the current employees and management team of Xinkangqi after closing the transaction, which the company expects by the end of September 2011.