The Guangdong Yuehai Feed Group, one of the largest Chinese aquafeed company, has announced its plans to acquire a 51% stake in Yixing TianShi Feed, a producer of feed additives. The deal, which was approved by Yuehai Feed’s board on 29 October, 2024, aims to strengthen the company’s market position and boost its profitability. Both parties have signed a non-binding Memorandum of Understanding (MOU) outlining the key terms of the acquisition.
The acquisition will allow Yuehai Feed to leverage TianShi’s technological expertise and expand its footprint in the feed additive sector, particularly in international markets. Yuehai Feed also plans to acquire the remaining 49% stake within the next three years.
Under the terms of the agreement, Yuehai Feed will acquire shares from TianShi’s current shareholders—Zhao Sanyuan, Zhao Yidong, and Qian Tongying—who collectively hold 100% of the company. The total price for the 51% stake is set at ¥112.2 million, based on a pre-investment valuation of ¥220 million for TianShi Feed.
TianShi Feed, established in 1998, specializes in producing feed additives such as betaine, a critical ingredient for aquatic feed.
With exports to over 70 countries, TianShi is recognized as one of the global leaders in betaine production. The company’s revenue for the first half of 2024 was approximately ¥168.27 million, with a net profit of ¥3.13 million.
The transaction is still subject to due diligence, audits, and regulatory approvals, and may impact Yuehai Feed’s financial performance in the short term. Investors are advised to exercise caution, as the deal remains in its early stages and is not yet finalized.
