Rentech acquires New England Wood Pellet
May 1, 2014
By Canadian Biomass
May 1, 2014, Los Angeles, Calif. – Rentech, Inc. announced that it has acquired New England Wood Pellet (NEWP), the largest producer of wood pellets for the U.S. heating market.
May 1, 2014, Los Angeles, Calif. – Rentech, Inc. announced
that it has acquired New England Wood Pellet (NEWP), the largest producer of
wood pellets for the U.S. heating market.
The Company’s management will discuss the acquisition on its
first quarter earnings conference call, which is scheduled for May 13, 2014.
NEWP, established in 1992, operates three wood pellet
facilities with a combined annual production capacity of 240,000 tons. The
facilities are strategically located in the U.S. Northeast, which is the
largest domestic market for consumption of wood pellets for heating. NEWP
generated EBITDA of approximately $7.4 million in 2013. Further explanation of
EBITDA, a non-GAAP financial measure, and a reconciliation of NEWP’s EBITDA to
operating income have been included below in this press release.
“NEWP is the leader in the growing U.S. market for wood
pellets used in heating applications. The acquisition brings additional cash
flows and profitability to our wood fibre business. In addition, NEWP’s
business broadens our product offerings, customer base and geographic markets,”
said D. Hunt Ramsbottom, president and chief executive officer of Rentech.
Rentech owns two pellet plants currently under construction in northern Ontario. The Atikokan plant, with an expected capacity of 125,000 tons, and the Wawa plant, with an expected capacity of over 400,000 tons.
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