Probiotec has entered into a conditional binding agreement with Beston Global Food Company (BGFC) for the proposed sale of its ADP protein plant in Jervois, South Australia.
The proposed $7 million sale is to be paid in cash, subject to the completion of due diligence by BGFC and the majority of the money would be received on completion.
The agreement contains provisions for Probiotic to obtain ongoing supply of immunoglobulins produced by the plant.
If successful, the directors expect the transaction to be completed by 30 September, 2015.
Last week, BGFC came to the rescue of Murray Bridge milk processor United Dairy Power, by contracting to buy it out of receivership with the goal of supplying its South Australian milk products to Asia.
BGFC – headed by Adelaide businessman Roger Sexton, has, over a period of three years, built up its investments with the view of taking premium clean, green Australian food and beverage products into global markets, particularly China and Asia.