Download: NutraCea Acquisition Press Release.pdf
SACRAMENTO, Calif., March 5, 2008 –Weintraub Genshlea Chediak, a Sacramento-based business law and business litigation firm, represented NutraCea, a world leader in stabilized rice bran or SRB, technology and nutrient research, based in Phoenix, Arizona, in the acquisition of Irgovel, the largest South American rice bran oil processing facility, for approximately $14 million.
The 70,000 ton annual capacity facility provides NutraCea with the opportunity to expand its marketable products to rice bran oil, in addition to its current portfolio of patented and proprietary stabilized rice bran, into the South American marketplace. They expect to invest additional $4 to $6 million in 2008 to refurbish Irgovel’s facility, thus preparing the company to generate approximately $30 million in annual sales from rice bran oil. NutraCea also plans to install its proprietary technology during 2008 to improve the dynamics of the traditional rice bran oil extraction business for the production of higher value-added derivative products. These new derivative products could result in meaningful additional revenue from 2009.
Shareholder Chris Chediak and associate Jeff Pietsch of the firm’s corporate and securities group, and Meritas affiliated law firm Felsberg e Associados in Sao Paulo, Brazil, assisted NutraCea with the acquisition. Weintraub Genshlea Chediak is a member of Meritas (www.meritas.com), a global alliance of business law firms that delivers localized legal service of the highest quality worldwide. “We are very pleased that we could provide a positive outcome for our client after many months of negotiations between the two parties as well as with the Brazilian government,” said Chris Chediak.
Weintraub Genshlea Chediak is Sacramento’s leading business and litigation law firm with one of the largest corporate practices in the region. Major practice areas include litigation, real estate, corporate, securities, banking, intellectual property, licensing and distribution, nonprofit law, entertainment, labor and employment, fiduciary abuse, tax, trusts and estates. For more information, please visit www.weintraub.com.
CONTACT: Brenda Applegate