Beijing and Los Angeles, Aug. 26 - American Dairy, Inc. ("American Dairy" or the "Company"), one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China, closed its previously announced private placement with Sequoia Capital today.
The Company issued 2.1 million shares of common stock to Sequoia Capital for an aggregate purchase price of $63.0 million, which included $47.0 million in cash as well as the conversion of a $16.0 million bridge loan into equity, at the same terms.
In connection with the closing of the transaction, American Dairy's Board of Directors approved the appointment of Neil N. Shen, Founding and Managing Partner of Sequoia Capital China, to its Board of Directors. Mr. Shen co-founded Ctrip, a NASDAQ-listed travel consolidator in China, and served as its Chief Financial Officer from 2000 to October 2005 and as its President from August 2003 to October 2005. He also co-founded Home Inns and Hotels Management ("Home Inns"), a NASDAQ-listed, leading economy hotel chain in China. Prior to founding Ctrip and Home Inns, Mr. Shen had worked for more than eight years in the investment banking industry in New York and Hong Kong. Currently, Mr. Shen is a Co-Chairman of Home Inns, a director of Ctrip and a director of E-House (China) Holdings Limited, an NYSE-listed leading real estate service company in China. He is also an independent director of Focus Media Holding Limited, a NASDAQ-listed media advertising company based in China, and a director of a number of privately owned companies based in China. Mr. Shen received his bachelor's degree from Shanghai Jiao Tong University in China and his master's degree from the School of Management at Yale University.
About American Dairy, Inc.
American Dairy, Inc. (NYSE: ADY) is one of the leading producers and distributors of premium infant formula, milk powder, and soybean, rice and walnut products in the People's Republic of China. American Dairy conducts operations in China through its wholly owned subsidiary, Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is headquartered in Beijing, China, and has processing and distribution facilities in Kedong, Qiqihaer, Baiquan, Gannan, Longjiang, Shanxi, and Langfang. Using proprietary processing techniques, American Dairy makes products that are specially formulated for particular ages, dietary needs and health concerns. American Dairy has over 200 company-owned milk collection stations, two dairy farms, six production facilities with an aggregate milk powder production capacity of approximately 1,220 tons per day and an extensive distribution network that reaches over 80,000 retail outlets throughout China. .
About Sequoia Capital
Since 1972, Sequoia Capital, a leading private investment partnership, has provided early stage and growth stage venture capital for very smart founders and executives who have turned great ideas into sustainable companies of enduring value. As the "Entrepreneurs Behind the Entrepreneurs," Sequoia Capital's Partners have worked with accomplished innovators and operators who built great franchises such as Agile Software, Apple Computer, Aruba Wireless Networks, Cisco Systems, Flextronics, Google, Informix, Isilon Systems, Linear Technology, LSI Logic, Microchip, NetScaler, NetScreen, Network Appliance, nVidia, Oracle, PayPal, Pixelworks, Yahoo!, YouTube, Aruba Networks and Netezza.