China Green Star Agricultural (TSX: V.GRE, Stock Forum) late Wednesday announced that its Chinese operating subsidiary, Fujian Province Pucheng County Star of Green Food Stuff Company Ltd., has entered into a binding Letter of Intent to acquire a Chinese tomato pulp producer, located in northeastern China.
The acquisition price will be $5.8 million in cash and the transaction is expected to close in the third quarter.
China Green Star added that the tomato pulp producer had 2012 revenues of $10.2 million, with a net profit of $2.3 million, according to unaudited management accounts.