US pellet producers merge

In the US, Lignetics and Bear Mountain Forest Products have completed a merger to create a company that will produce approximately 450,000 tonnes a year of wood pellets, making it the largest residential wood pellet fuel producer in the country.

The company will also be the only pellet manufacturing company that will have wood pellet facilities on both the East and West Coast, in locations including Oregon, Idaho, and West Virginia.

'We are excited about the merger with Lignetics and the ability to offer all of our customers a more diverse product offering, now from five different plant locations,' says Bob Sourek, CEO of Bear Mountain Forest Products.

Financing for the transaction was provided by Taglich Private Equity and Gladstone Capital, which provided subordinated debt and equity financing, along with Texas Capital Bank, which provided senior debt in support of the transaction.