July 21, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — AgFeed Industries, Inc. (NASDAQ: FEED), a hog production and animal nutrient company in China, said that it has reached an agreement in principle to acquire the operations of M2P2 LLC. AgFeed and M2P2 have entered into a non-binding term sheet summarizing the principle terms of the acquisition and expect to complete the transaction later this summer.

AgFeed said that it is anticipated that John Stadler, chairman of M2P2 will join AgFeed's board upon completion of the transaction.

Iowa-based M2P2 is a joint venture partner with AgFeed in AgFeed International Protein Technology Corp.

Songyan Li, AgFeed's chairman, said, "For both AgFeed and M2P2 this is a transformational opportunity to position our combined businesses to achieve superior growth and earnings on an international basis as we respond to global market opportunities."

The aggregate consideration AgFeed expects to pay to acquire M2P2 is $16 million, subject to adjustment based upon the book value of M2P2's assets, of which 80% will be paid in cash and 20% in AgFeed common stock.

New York-based AgFeed Industries is a U.S. company with its primary operations in China.

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