China Integrated Energy, Inc. reported that the company has closed on the acquisition of a bio diesel production facility located in China. The company said that it would increase production immediately from this facility.
China Integrated Energy, Inc. said that the bio diesel facility is located in Chongqing City, China, and was purchased from Chongqing Tianrun Energy Development Co., Ltd. for $16.5 million, payable in cash at closing. The company said that it would fund the acquisition with cash on hand.
China Integrated Energy, Inc. said that the acquisition will add $32 million in sales in 2011, and result in an additional pretax margin of 25%, or $8 million. This income will be taxed at a rate of 15%.
China Integrated Energy, Inc. has another bio diesel production facility under construction with an annual capacity of 50,000 tons. The facility is located in Tongchuan City, Shaanxi Province, China. The company also owns 13 retail gas stations in China.
China Integrated Energy, Inc. also reaffirmed its sales and net income guidance for 2011. The company believes that sales will range from $425 to $430 million, and net income will be between $52 million and $52.5 million.
For more information on the company, go to www.chinaintegratedenergy.com
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