AOB completes $25M buy of Chinese drugmaker

American Oriental Bioengineering, a company that produces and distributes a broad range of pharmaceutical and nutraceutical products throughout China, has closed its acquisition of Guangxi Lingfeng Pharmaceutical Company, a Chinese drugmaker specializing in the manufacturing and distribution of plant-based medicines. Based in Hezhou City, Guangxi, and founded in 1975, over the past 30 years, GLP has developed a valuable product portfolio aimed at pediatrics, gynecopathy and the treatment of digestive and respiratory system illnesses, AOB noted. As part of the deal, AOB acquired 100% ownership of GLP for a total consideration $25.0 million, which is equal to 2.5 times its prior fiscal year revenue, and consists of approximately $20.0 million in cash and 1,200,000 shares of restricted AOB common stock.