Vorsatech Ventures, Inc. has entered into a definitive agreement to acquire Synutra International, Inc., positioning itself to capitalize on China's lucrative infant formula market.

Overview of Synutra International, Inc.

Synutra International, Inc. is a U.S.-based company that operates entirely within the Chinese market, focusing on the production, distribution, and sale of dairy-based infant formula products. It owns 100% of six subsidiaries, which manage various aspects of the business, such as sales, packaging, production, and research and development. The subsidiaries include Qingdao Shenyuan Dairy Company Limited for sales and marketing, Qingdao Shengqiaozhi Dairy Company Limited for packaging and transport, Zhangjiakou Shenyuan Dairy Company Limited for production, Beian Yipin Dairy Company Limited for adult dairy products, Luobei Shenyuan Dairy Company Limited for additional infant formula production, and Qingdao Baby Nutrition Research Company Limited which specializes in product development.

With a comprehensive sales network that spans 24 provinces and over 11,800 retail locations across more than 800 counties in China, Synutra has successfully established itself in a competitive market. Since its founding in 2000, it has achieved remarkable revenue growth, positioning it as one of the top ten players in the infant formula sector in China with consistent annual growth rates exceeding 50%. Notably, in 2004, Synutra's infant formula was ranked third among domestic manufacturers and eighth among foreign producers in China.

Industry Overview in China

The infant formula market in China represents a significant and rapidly growing segment of the food industry, driven largely by the country’s booming population and the increasing birth rate, with approximately 18 million babies born annually. This creates a robust demand