China-based GreenStar Agricultural is set to complete the acquisition of Beichen Tomato Products in Bayannur City, Inner Mongolia, on 1 January 2014.
The company has agreed to pay around C$4.2m ($4m) for Beichen Tomato's assets.
The acquisition of the Beichen operations will be complimentary and accretive to GreenStar's current business, and will assist GreenStar in its plans to become a vertically integrated producer of tomato based products, according to the company.
Meanwhile, this transaction is also expected to increase the company's tomato paste production capacity, which last year represented 55% of GreenStar's revenues.
In addition, GreenStar is talks to acquire an importer and distributor of food products in Canada.
GreenStar Agricultural Business Development manager Robert Macdonald said that this potential acquisition reflects GreenStar's strong determination to enter the North American food industry and establish a market for its products on this continent.
"Acquiring a Canadian food distribution operation would provide GreenStar with a unique platform for its operations in Canada. While we are confident that a mutually beneficial transaction can be structured, there is currently no assurance that any transaction will be consummated," added Macdonald.
GreenStar processes and sells agricultural and food products in the People's Republic of China and internationally. The company cultivates and harvests agricultural products, such as fresh fruit and vegetables.
