Company Sees the Golden Ridge Operations adding $20 Million in Revenue in 2019
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 .
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.
Ascendant Partners, LLC