CEO Jeff Posner said the investment from Decathlon Capital Partners – along with additional equity from affiliated sponsors as part of the transaction – is a revenue-based finance arrangement.
“Riceworks is not required to give up equity or ownership for growth capital. Instead, the investment will be repaid through Riceworks’ future revenue,” said Posner.
The Chicago-headquartered snack producer was founded in 2005 by a family of rice growers and today creates better-for-you, all-natural rice-based snacks, including five variants of chips – Sea Salt, Salsa Fresca, Sweet Chili, Wild Sea Salt & Black Sesame and Wild Black Japonica – and three Omega-3 bars – Apple Cinnamon, Blackberry and Strawberry. The snacks target the conscious consumer sector, relying on whole grain rice as the base ingredient, which makes them gluten-free, with no artificial flavours or preservatives.
New geographies and channels
The snacks are currently available in more than 7,500 locations across the US and Canada, including grocery stores, warehouse clubs and convenience stores. The funding will give the brand a foot up to get into the hands of more consumers on the continent.
“Consumers have enthusiastically embraced the delicious, real and wholesome snacks developed by Riceworks,” said Rick Letizia, president and COO of Riceworks, which is part of the Wholesome Goodness LLC family of companies.
“This additional funding supports the company’s aggressive plans to expand distribution into new geographies and open multiple new channels.”
Kevin Grossman, VP of Decathlon, added, “With a skilled, well-respected leadership team, ownership of two process patents in North America, Europe and Asia, and a pipeline of delicious new products, Riceworks has created a strong platform for continued growth as a significant player in the expanding natural healthy snack segment.”
Decathlon is a revenue-based funding investor in the US and active in a wide range of sectors. It provides growth capital for companies seeking alternatives to traditional equity investment – without the dilution, loss of control and operational overhead that often comes with equity-based funding.