EagleTree Capital (EagleTree), on behalf of its private equity fund EagleTree Partners V, has acquired Lignetics, a consumer-focused wood pellet manufacturer in the US, from Taglich Private Equity and Mill Road Capital.
Lignetics will be a new platform investment in the EagleTree portfolio, and Lignetics’ operations, management team and personnel will remain unchanged following the EagleTree investment. Co-investors, including Alpha Associates, Bullingham Capital, Farol Asset Management, Manulife Investment Management, Misland Capital, Northwestern Mutual Capital, and Thrivent Financial, are investing alongside EagleTree. Terms of the transaction have not been disclosed.
Headquartered in Louisville, Colorado, Lignetics is the largest consumer-focused wood pellet manufacturer in the US, with a production capacity of nearly 1.4 million tons per year. Lignetics has been upcycling wood waste into home heating pellets since 1983 and into premium barbecue pellets since 1990. Annually, Lignetics diverts over 2,000,000 tons of wood waste, or more than 100,000 truckloads, into renewable, sustainable, value-add consumer products. Today, Lignetics is dedicated to supplying innovative products to its consumers under various brands, including Green Supreme (residential heating), Lignetics (residential heating), Bear Mountain BBQ (home grilling), Lumber Jack Grilling Pellets (home grilling), and Catalyst Pet (high performance sustainable cat litter). The company is committed to providing the highest quality eco-friendly and 100 per cent natural product offerings across its business lines and brand portfolio.
“We are thrilled to partner with EagleTree and leverage their extensive consumer products expertise to further accelerate our growth,” says Brett Jordan, Chief Executive Officer of Lignetics. “EagleTree’s partnership will allow us to expand our manufacturing capacity to better serve our customers who depend on Lignetics for home heating. We see incredible opportunities for growth in our BBQ pellet brands, Catalyst cat litter, and other new products in development, and we look forward to working with EagleTree to continue executing our strategy. I would like to thank Taglich PE and Mill Road Capital and in particular Will Morris and Doug Hailey for their tremendous support and commitment to our shared vision. Together we have created an industry leading business and I look forward to building on that success with the EagleTree team.”
“We are delighted to add Lignetics to EagleTree’s portfolio and to partner with Brett Jordan and the outstanding management team at Lignetics. Lignetics has built a market leading position in the consumer wood pellet industry, upcycling over 2,000,000 tons of wood waste per year into sustainable, all-natural products. We are confident the company is well positioned to capitalise on attractive tailwinds in the residential pellet heating, pellet grilling and wood-based pet litter markets,” says George L Majoros, Jr, Co-Managing Partner at EagleTree. “We believe the next phase of Lignetics’ growth will deliver substantial value to its customers, partners and employees, and we look forward to supporting their tremendous momentum.”
“It has been a pleasure partnering with Brett and the Lignetics management team over the past few years,” says William Morris, Managing Director of Taglich Private Equity. “We are proud of the business that we have built together, thrilled that Lignetics has found a strong home with EagleTree and are excited for what the future holds for the team.”
“We are proud of the company that the Lignetics team has built and thankful for the hard work and dedication of its employees,” says Justin Jacobs, Managing Director of Mill Road Capital. “The team at Taglich Private Equity have been great partners and we look forward to Lignetics’ continued success with EagleTree.”
Raymond James Consumer Investment Banking team acted as exclusive financial advisor, Dentons Durham Jones Pinegar acted as legal advisor, and Moss Adams acted as due diligence advisor to Lignetics. Jones Day acted as legal advisor and Alvarez & Marsal acted as due diligence advisor to EagleTree.
