Erly Industries and its Comet Rice subsidiary...

Erly Industries and its Comet Rice subsidiary bought a 48% stake in Houston-based American Rice Inc., one of the nation’s largest rice millers, processing about 12% of the U.S. crop. Erly and Comet each invested $20 million in ARI, a cooperative owned by 2,200 grower members that has voted to reorganize as a business corporation. Under the reorganization, the members will receive cash for their preferred stock and a new issue in exchange of their common stock that will trade in the over-the-counter market, according to Los Angeles-based Erly. Comet mills about 13.5% of the U.S. rice crop.