Lignetics acquires New England Wood Pellet

By Lignetics Inc. | February 27, 2018

Today, Lignetics Inc. announced the acquisition of New England Wood Pellet LLC, which includes manufacturing plants in Jaffrey, New Hampshire; Schuyler, New York; Deposit, New York; and Youngsville, Pennsylvania, giving Lignetics a strong position in the New England and mid-Atlantic markets. Lignetics is the largest residential wood pellet manufacturing company in the U.S. which post-acquisition has a production capacity of approximately 1 million tons of wood pellets per year. The company is the only pellet manufacturer that has wood pellet manufacturing plants in the East, Central, and West geography with 13 plant locations in the states of Maine, Oregon (2), Idaho, West Virginia, Virginia, Wisconsin (3), New Hampshire, New York (2), and Pennsylvania.

Brett Jordan, CEO of Lignetics stated, "Completing this acquisition is a significant step in continuing to execute our strategy to expand our geographic footprint in the U.S. and remain the market leader in the residential wood pellet industry.” Jordan added, “New England Wood Pellet has long been the leader in the New England market with strategically located manufacturing plants and strong customer relationships managed by a very talented team, whose goal is to continue to provide a superior product and excellent customer service.”

New England Wood Pellet is being sold by the parent company Rentech Inc. Mark Wilson, New England Wood Pellet’s CEO, has agreed to provide consulting services through a transition to ensure a seamless experience for New England Wood Pellets customers, suppliers, and employees.

“We have admired the New England Wood Pellet business that Mark has built with his team over the last several years and we consider them as a benchmark for the industry in many ways. We are excited to have this tremendously talented team join the Lignetics family of companies and we believe the combination will be truly transformational for the business,” Jordan said of the transaction.

Financing for the transaction was arranged by Taglich Private Equity LLC, with an equity investment from Mill Road Capital. Gladstone Capital Corporation provided subordinated debt financing and Texas Capital Bank provided syndicated senior debt, which included Sterling National Bank and River Valley Bank in support of the transaction. Will Morris, Managing Director of Taglich Private Equity noted that Lignetics continues to be interested in exploring additional add-on acquisitions. “We are excited about this acquisition and the growth opportunities in our business to support our goal of being the largest and highest quality residential wood pellet manufacturing company in the U.S.,” stated Morris.