Fiberstar spins off ingredient technology company
August 13, 2010
by Jeff Gelski
RIVER FALLS, WIS. — Fiberstar, Inc. has spun off its R.&D. business unit into Fiberstar Bio-Ingredient Technologies, Inc., Dale Lindquist, president and chief executive officer of Fiberstar, said. In exchange, River Falls-based Fiberstar received shares of Fiberstar Bio common stock and an exclusive worldwide license to produce and sell Citri-Fi and Imulsi-Fi, products derived from citrus pulp, a byproduct of orange juice processing.
Mr. Lindquist will continue to lead Fiberstar. Brock Lundberg, chief technology officer for Fiberstar Bio, will provide technical vision and direct day-to-day operations for Fiberstar Bio.
“This spin-off will enable Fiberstar to concentrate its efforts on promoting the burgeoning sales of Citri-Fi to global food manufacturers and Imulsi-Fi to global cosmetics and personal care products manufacturers,” Mr. Lindquist said.
Fiberstar also has formed a wholly-owned subsidiary, Fiberstar Ingredientes do Brasil, LTDA (Fiberstar Brazil) to meet global demand for Fiberstar products. The move will secure $12 million of equity and debt funding and will allow for the construction of a manufacturing plant in Brazil that will triple Fiberstar’s production capacity of Citri-Fi and Imulsi-Fi products.
Fiberstar sells its products in 54 countries through a global network of seven domestic brokers and 38 international distributors. Company revenues have been increasing at an annualized rate exceeding 40% with international sales accounting for 67% of total revenue.