THE WOODLANDS, Texas,
November 30, 2018 /PRNewswire/ --
RiceBran Technologies (RIBT) (RIBTW) (RBT), a global leader in
the production and marketing of value added products derived from
rice bran, today announced the completion of its acquisition of the
assets and operations of Golden Ridge Rice
Mills' rice milling and rice bran stabilization facility in
Wynne, AR ("Golden Ridge").
The Company expects Golden Ridge to add approximately
$20 million in revenue and EBITDA in
2019. The Golden Ridge operations encompass nearly 32 acres with
approximately 75% of its land available for expansion. Total
consideration for the Golden Ridge acquisition was approximately
$7.8 million, consisting of the
issuance of 1,666,667 shares of RiceBran Technologies common stock,
the retirement of approximately $2.2
million of debt at the time of closing, and the assumption
of approximately $600,000 of debt.
RBT also intends to implement some minor near-term Cap Ex projects
to expand capacity that, upon completion, are expected to increase
EBITDA at Golden Ridge by as much as 30%.
"The acquisition of Golden Ridge is a very important part of our
strategic plan to grow the business and build long-term value for
our stockholders," said Brent
Rystrom, President and Chief Executive Officer. "Golden
Ridge gives us a substantial presence in Arkansas, where more U.S. rice is produced and
processed than any other rice-producing state, and provides a
source of stabilized rice bran (SRB) that is closer to many of our
customers in the Midwest and Eastern U.S., with active and
attractive freight lanes. It also gives RBT control over our
milling scheduling that will enable us to produce SRB based on our
production needs which should permit us to significantly improve
supply chain management and improve gross margins in our SRB
business."
Rystrom continued, "In addition to these benefits, the Golden
Ridge acquisition will leverage our sales force by expanding our
product portfolio to initially include the supply of rice, brown
rice, brewers' rice, and brokens. These are all synergistic
ingredients for our target customers which should enable our team
to build more broad-based customer relationships. The site also has
considerable room for expansion to increase our SRB production
capacity as well to house additional product development capacity
to further expand our product portfolio. We look forward to
integrating Golden Ridge into RBT's operations as we continue our
efforts to grow sales and achieve EBITDA profitability by the
second half of 2019."
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company
servicing the food, animal nutrition, and specialty ingredient
products markets. We utilize our proprietary and patented
intellectual property to convert rice bran, one of the world's most
underutilized food sources, into a number of highly nutritious and
clean label ingredient products. The global target markets for our
products include food and animal nutrition manufacturers and
retailers, as well as specialty food, functional food and
nutritional supplement manufacturers and retailers. More
information can be found in the Company's filings with the SEC and
by visiting our website at http://www.ricebrantech.com .
Forward-Looking Statements
This release contains forward-looking statements, including, but
not limited to, statements about RiceBran Technologies'
expectations regarding its acquisition of Golden Ridge's milling
operations and any resulting benefits to RBT, including any
benefits or improved EBITDA in connection with the acquisition.
RiceBran Technologies does not undertake to update forward-looking
statements in this news release to reflect actual results, changes
in assumptions or changes in other factors affecting such
forward-looking information. Assumptions and other information that
could cause results to differ from those set forth in the
forward-looking information can be found in RiceBran Technologies'
filings with the Securities and Exchange Commission, including its
most recent periodic reports.
Investor Contact:
Ascendant Partners, LLC
Richard Galterio
+1(732)410-9810
rich@ascendantpartnersllc.com
SOURCE RiceBran Technologies