Under the terms of the agreement, Imperial paid $4.0 million in cash to purchase 5% of Wholesome's common stock from Billington, increasing Imperial's ownership position from 45% to 50%. The $4.0 million investment also includes an option to acquire the remaining 50% interest owned by Billington and is exercisable between September 1, 2010, and May 31, 2011, at an agreed multiple of future earnings.
"This is an excellent investment that fits very well with our overall strategy to enter new businesses, expand channels of distribution, develop innovative products, and pursue new avenues of growth beyond our core business," said John Sheptor, president and CEO of Imperial Sugar Company. "We believe Wholesome Sweeteners is the leading organic sugar company in the U.S. and provides an excellent foundation for us to grow our natural and organic portfolio."