Rentech acquires major US pellet producer
Rentech Inc. has acquired all three of New England Wood Pellet’s manufacturing facilities, a $34.5 million investment that adds 240,000 tons to the company’s annual pellet output.
New England Wood Pellet, founded in 1992, has built facilities in Jaffrey, N.H.; Schuyler, N.Y. and Deposit, N.Y. Rentech cited several reasons for the acquisition, including New England Wood Pellet’s strong financial profile, the fact that the company commands an approximate 15 percent share of the market for heating pellets in the Northeast U.S. and is well-known to many popular retailers, and the transaction expands Rentech’s current wood pellet offerings to the domestic market.
Rentech will maintain New England Wood Pellet’s brands, including its bagged New England Wood Pellet and Warm Front brands. Julie Dawoodjee Cafarella, vice president of investor relations and communications at Rentech, said the company will also retain all employees of the Jaffrey, Schuyler and Deposit facilities.
The New England Wood Pellet acquisition comes one year after Rentech’s assumption of Georgia-based Fulghum Fibers Inc., the leading provider of contract wood chip processing services in the U.S. The company is also in the process of converting two Wawa and Atikokan, Ontario, wood processing facilities into wood pellet plants.