The Woodlands, Texas-based RiceBran Technologies (NASDAQ: RIBT) announced Nov. 6 it plans to purchase Golden Ridge Rice Mills, which includes a principal milling plant in Wynne, Ark. The roughly $8 million deal is expected to close in early December.
Company officials said they will issue RiceBran shares for half the purchase price and borrow money for the remainder.
The company noted in it’s third quarter earnings report that Golden Ridge would add $20 million in sales in 2019 and add “significant room for expansion of Stabilized Rice Bran (SRB) production.”
“We expect this mill to be an important component of our SRB supply in the Arkansas region while providing us with a platform to develop new products derived from SRB to expand our growth opportunities,” according to the company statement.
The company also boosted 2018 earnings expectations as a result of the Golden Ridge deal. The 2018 annual revenue range is now $14.5 million to $15.5 million, up from previous guidance of $14 million to $15 million.
Third quarter revenue was $3.5 million, up from $3.4 million in the same quarter of 2017. However, the company posted a $1.627 million quarterly loss, compared with a a $3.299 million gain in the 2017 quarter.
RiceBran Technologies is a specialty ingredient company servicing the food, animal nutrition and specialty ingredient products markets. Global markets for RiceBran products include food and animal nutrition manufacturers and retailers, and specialty food, functional food and nutritional supplement manufacturers and retailers.