Biostime International Holdings (Biostime), a China-based premium pediatric nutrition and baby care products provider, is to purchase 100% equity interest in Changsha Yingke Nutrition Products Company (CYNPC) for CNY350m ($57.8m).

Changsha Yingke will be purchased by Biostime’s wholly-owned subsidiaries BiosTime and Biostime Health Products from Hunan AVA Dairy Company and Hunan Changsha AVA Dairy Company.

The acquisition will allow Biostime to expand the production capacity of its new high-end milk powder of ADIMIL series, which is soon expected to be launched in the fourth- and fifth-tier cities in the country.

ADIMIL series milk powder was first launched in China in September 2013 from France and reported successful results.

To expand the product to the fourth and fifth tier cities, the company will launch new products under the series in 2014.

The addition of Changsha Yingke facility will add annual infant formulas milk powder production capacity of 30,000 tonnes to 50,000 tonnes to the group’s production.

The company will use imported milk source to manufacture the new products of ADIMIL series and will ensure that the Changsha Yingke will follow the strict quality control systems to ensure product’s food safety and quality.

Biostime’s portfolio of products include premium probiotic supplements for children, infant formulas and dried baby food products marketed under the brand name Biostime, baby care products marketed under the brand name BMcare.

Image: Biostime produces high-end baby milk powder of ADIMIL series. Photo courtesy of Jomphong/