Key Takeaways
- • EagleTree Capital, on behalf of EagleTree Partners V, has acquired Lignetics Inc. from Taglich Private Equity and Mill Road Capital, according to a Business Wire release dated November 1, 2021.
- • Lignetics, headquartered in Louisville, Colorado, is described as the largest consumer-focused wood pellet manufacturer in the U.S., with production capacity of nearly 1.4 million tons per year.
- • The company becomes a new platform investment in EagleTree's portfolio, with management, operations and personnel remaining unchanged.
- • Co-investors include Alpha Associates, Bullingham Capital, Farol Asset Management, Manulife Investment Management, Misland Capital, Northwestern Mutual Capital and Thrivent Financial.
- • Terms of the transaction were not disclosed.
Summary
EagleTree Capital, acting on behalf of its private equity fund EagleTree Partners V, has acquired Lignetics Inc. from Taglich Private Equity and Mill Road Capital, the companies announced in a Business Wire release. Lignetics will be a new platform investment in the EagleTree portfolio, and its operations, management team and personnel will remain unchanged following the transaction. Several co-investors are investing alongside EagleTree: Alpha Associates, Bullingham Capital, Farol Asset Management, Manulife Investment Management, Misland Capital, Northwestern Mutual Capital and Thrivent Financial. The purchase price was not disclosed.
Lignetics, based in Louisville, Colorado, describes itself as the largest consumer-focused wood pellet manufacturer in the U.S., with production capacity of nearly 1.4 million tons per year. The company has produced home heating pellets since 1983 and premium barbecue pellets since 1990, and states that it diverts more than 2,000,000 tons of wood waste annually. Its brands include Green Supreme and Lignetics (residential heating), Bear Mountain BBQ and Lumber Jack Grilling Pellets (home grilling), and Catalyst Pet (sustainable cat litter). The company also says it operates a network of 22 plant locations across the U.S. and Canada.
Lignetics CEO Brett Jordan said the partnership would allow the company to expand manufacturing capacity to serve home heating customers and to pursue growth in its BBQ pellet brands, Catalyst cat litter and other products in development. He thanked Taglich Private Equity and Mill Road Capital, specifically Will Morris and Doug Hailey. George L. Majoros, Jr., Co-Managing Partner at EagleTree, said the firm sees attractive tailwinds in residential pellet heating, pellet grilling and wood-based pet litter markets. William Morris, Managing Director of Taglich Private Equity, and Justin Jacobs, Managing Director of Mill Road Capital, both praised the partnership and the business built under their ownership.
Raymond James Consumer Investment Banking acted as exclusive financial advisor to Lignetics, with Dentons Durham Jones Pinegar as legal advisor and Moss Adams as due diligence advisor. Jones Day served as legal advisor and Alvarez & Marsal as due diligence advisor to EagleTree. EagleTree, a New York-based middle-market firm, reported $4.8 billion in assets under management as of December 31, 2020.
Lignetics, based in Louisville, Colorado, describes itself as the largest consumer-focused wood pellet manufacturer in the U.S., with production capacity of nearly 1.4 million tons per year. The company has produced home heating pellets since 1983 and premium barbecue pellets since 1990, and states that it diverts more than 2,000,000 tons of wood waste annually. Its brands include Green Supreme and Lignetics (residential heating), Bear Mountain BBQ and Lumber Jack Grilling Pellets (home grilling), and Catalyst Pet (sustainable cat litter). The company also says it operates a network of 22 plant locations across the U.S. and Canada.
Lignetics CEO Brett Jordan said the partnership would allow the company to expand manufacturing capacity to serve home heating customers and to pursue growth in its BBQ pellet brands, Catalyst cat litter and other products in development. He thanked Taglich Private Equity and Mill Road Capital, specifically Will Morris and Doug Hailey. George L. Majoros, Jr., Co-Managing Partner at EagleTree, said the firm sees attractive tailwinds in residential pellet heating, pellet grilling and wood-based pet litter markets. William Morris, Managing Director of Taglich Private Equity, and Justin Jacobs, Managing Director of Mill Road Capital, both praised the partnership and the business built under their ownership.
Raymond James Consumer Investment Banking acted as exclusive financial advisor to Lignetics, with Dentons Durham Jones Pinegar as legal advisor and Moss Adams as due diligence advisor. Jones Day served as legal advisor and Alvarez & Marsal as due diligence advisor to EagleTree. EagleTree, a New York-based middle-market firm, reported $4.8 billion in assets under management as of December 31, 2020.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.