Alothon Increases Ownership Interest in Nutra SA, LLC
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.
4/12/2011 --- NutraCea, a world leader in production and marketing of stabilized rice bran (SRB), rice bran oil (RBO) and their derivative products, 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."
