Los Angeles-based Rentech, Inc. announced that it has acquired New England Wood Pellet (NEWP), the largest producer of wood pellets for the U.S. heating market.
NEWP, established in 1992, operates three wood pellet facilities with a combined annual production capacity of 240,000 tonnes. The facilities are located in Jaffrey (NH), Schuyler (NY) and Deposit (NY) in the largest domestic market for consumption of wood pellets for heating. NEWP generated EBITDA of approximately $7.4 million in 2013.
“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 a projected annual capacity of 125,000 tonnes, and the Wawa plant, with an annual design capacity of over 400,000 tonnes.