SCOTTSDALE, Ariz., April 11, 2011 /PRNewswire/ -- NutraCea (NTRZ.pk), a world leader in production and marketing of stabilized rice bran (SRB), rice bran oil (RBO) and their derivative products, today announced that Alothon Group LLC, through its AF Bran Holdings subsidiaries (collectively "Alothon"), has purchased additional membership units of Nutra SA, LLC ("Nutra SA"), the 100% owner of Industria Riograndese De Oleos Vegetais Ltda. ("Irgovel"), from NutraCea, increasing its ownership interest in Nutra SA to 40.1%.
This purchase was triggered by Irgovel satisfying the Performance Conditions defined in the Membership Interest Purchase Agreement (the "Agreement") between Alothon, Nutra SA and NutraCea.
Under the terms of the Agreement, if Irgovel's earnings before interest, taxes, depreciation and amortization for the six month period beginning on October 1, 2010 and ending on March 31, 2011 met or exceeded a specified amount, then, subject to the terms and conditions of the Agreement, Alothon would purchase 500,000 additional units held by NutraCea.
Irgovel met and exceeded the agreed upon 6 month target established in the Agreement in less than 5 months. As a result, Alothon accelerated the purchase of the additional 500,000 units.
NutraCea Chairman and CEO, W. John Short, commented: "We are proud of the better-than-plan performance delivered by our team at Irgovel and, we thank our partners at Alothon for recognizing that performance by agreeing to close early on the additional membership interest purchase."
Ettore V. Biagioni, Managing Partner of Alothon, said: "We are very pleased that strong execution by the management team has yielded good results for the business."
NutraCea is a world leader in production and marketing of stabilized rice bran (SRB), rice bran oil (RBO) and their derivative products. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally an underutilized co-product of rice milling. NutraCea also produces consumer rice based health supplements which can be found at http://www.nutraceaonline.com. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.
Alothon Group LLC is a private equity firm dedicated to Latin American investments. Over the past 15 years, Alothon has invested in more than 30 companies in Latin America. The firm is currently focused on mid to late stage buyouts in Brazil, with the investment strategy focused on leading positions in businesses with strong franchise value that are expected to benefit from the country's emerging middle class. Alothon works closely with the management of companies in which it invests and brings a combination of strategic, financial, operating and governance expertise. For additional information, please visit www.alothon.com.