Estonia’s Graanul Invest to purchase Texas Pellets assets
May 21, 2019
By Graanul Invest
Graanul Invest affiliate Woodville Pellets, LLC submitted the winning bid in the auction conducted on May 9, 2019 for the assets of Texas Pellets, Inc. and German Pellets Texas, LLC. The assets include Texas Pellets’ Woodville, Texas pellet manufacturing plant and its Port Arthur, Texas port terminal.
The transaction was approved by the United States Bankruptcy Court for the Eastern District of Texas after a hearing held on May 15, 2019 (subject to entry of a final order), and is planned to be finalized by June 15, 2019.
In connection with the acquisition, Graanul Invest received financing from funds managed by affiliates of Apollo Global Management, LLC.
The estimated manufacturing capacity of the wood biomass pellet plant in Woodville, Texas, U.S., is 450,000 MT of pellets per year. The Port Arthur terminal has a total storage capacity of 68,000 MT, and is capable of loading vessels up to approximately 60,000 MT.
Acquisition of Texas Pellets’ assets enables Graanul Invest group to expand its business to the United States to ensure greater security of supply to its customers. It also provides better logistical solutions for entering the Asian market, in particular the fast-growing markets in Korea and Japan.
With 11 pellet plants located in the Baltics, Graanul Invest group’s annual production volume is 2.2 million tons of pellets, making it the biggest pellet producer in Europe. Acquisition of the Texas Pellets pellet manufacturing plant offers a possibility to increase the group’s production capacity up to 25 per cent.
“We have been looking for a suitable opportunity to start pellet production in the United States for over 10 years. Once we have successfully completed this transaction, we will have firmly established our presence in North America,” said Raul Kirjanen, CEO of Graanul Invest.
Graanul Invest group operates in the field of bioenergy and renewable energy production, forestry and biomaterials development. The group employs over 500 people.
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