QINGDAO, China and ROCKVILLE, Md., June 16 /Xinhua-PRNewswire/ -- Synutra International, Inc. (Nasdaq: SYUT), one of China's leading manufacturers of dairy-based nutritional products for infants, children and adults, announced today the completion of its sale of 4 million shares of $0.0001 par value common stock, or approximately 7.4% of its outstanding shares of common stock, to an affiliated investment fund of Warburg Pincus LLC, the global private equity firm, for $66 million. The sale was previously announced on the company's current report on Form 8-K filed on May 29, 2007. Synutra plans to use the net proceeds from this financing for general corporate purposes. Pursuant to the terms of the transaction, Synutra granted Warburg Pincus registration rights with respect to the shares, and the right to designate a person to serve on the Board of Directors of the company so long as Warburg Pincus or its affiliates own at least 50% of the common stock acquired in the transaction
"We are delighted with this partnership and the significant investment made by Warburg Pincus. Their support will be instrumental in Synutra's growth and validates the continuing successful execution of our strategy," said Synutra Chairman and Chief Executive Officer Liang Zhang.
Commenting on the investment, David Li, a Warburg Pincus Managing Director said, "We are pleased to contribute to the continued success of Synutra. We have great confidence in the management and the business and believe this investment greatly complements our existing portfolio."
About Synutra International, Inc.
Synutra operates six subsidiaries developing, producing, distributing and selling dairy-based nutritional products across the People's Republic of China. It offers its products for infants, children, adults and pregnant women and nursing mothers under the brand series of "Super," "U-Smart" and "U-Strong." The Group's extensive sales network covers 24 provinces, 227 cities and more than 800 counties throughout China. For more information, please contact Weiguo Zhang of Synutra, Inc. (301 840 3888, wzhang@synutra.com), Brian Rafferty of Taylor Rafferty (212 889 4350), synutra@taylor-rafferty.com) or visit: http://www.synutra.com.
About Warburg Pincus
Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $20 billion of assets under management investing from nine offices around the world. Since inception, Warburg Pincus has invested $26 billion in 575 companies in 30 countries and across a range of sectors, including healthcare, consumer and retail, industrial, financial services, energy, real estate and technology, media and telecommunications. The firm has invested more than $3 billion in Asia since 1994 and has been a leader investing in consumer and retail-related companies in the region. Notable investments include Intime Department Store, Gome Electrical Appliances and China Huiyuan Juice Group. For more information please visit: http://www.warburgpincus.com.
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