M2P2, based in Ames, IA, has been purchased by AgFeed, a U.S.-based company with strong production ties in China, for $16 million in cash and stock.

M2P2 has sow operations in Colorado, North Carolina and Oklahoma, and finishing operations centered in Iowa, producing 1.3 million pigs annually.

AgFeed teamed up with M2P2 last May to establish a management company in Asia, AgFeed International Protein Technology Corp., which focuses on introducing the western model of pork production to China and Asia.

Ag Feed is purchasing M2P2 for 80% cash and 20% AgFeed stock.

AgFeed is one of the largest independent hog production and animal nutrient companies in China. Earlier this year, plans were announced to invest in a hog production project in Jiangxi Province to build five western model hog farms. The complex will boast annual production capacity of up to 600,000 hogs when the project is completed during 2012.