RiceBran Technologies completes acquisition of H&N Distribution
RiceBran Technologies has announced the completion of the acquisition of Irving, Texas-based H&N…RiceBran Technologies has announced the completion of the acquisition of Irving, Texas-based H&N Distribution, effective January 2, 2014. The deal was valued at US$5.25 million.
H&N is a formulator and co-packer for the direct marketing, internet sales and retail distribution markets both domestically and internationally. H&N serves the natural products, nutritional supplement, and nutraceutical and functional food sectors.
The acquisition and integration of H&N's product development and packaging capabilities is part of RBT's strategic plan to vertically integrate its business in order to leverage its proprietary and patented family of rice bran derivative ingredients, the company said. With this acquisition, RBT believes it is now capable of providing a broad range of higher margin finished product solutions for customers in retail, direct-to-consumer and multi-level marketing channels.
"The acquisition of H&N is a transformational transaction for our company in a number of ways,” said W. John Short, CEO and president of RBT. “It will have the effect of immediately and significantly increasing revenues and improving gross profit margins in our USA Segment. In addition, this acquisition not only positions RBT to significantly increase sales in the high margin nutraceutical and functional food market, it also brings a master formulator, consummate sales professional and experienced business manager to our senior team in Mark McKnight. Throughout the due diligence period, Mark's product knowledge and customer contacts, coupled with his ability to seamlessly work as part of our senior management group, have already provided a basis for new product development and product launches as we move into the new year. Our prospects for 2014 and beyond are significantly improved by the acquisition of H&N and the integration of Mark into our senior team."
