Enviva Partners completes Georgia Biomass acquisition
In the United States (US), Enviva Partners, LP, the world's largest industrial wood pellet producer has announced the completion of its previously announced acquisition of compatriot Georgia Biomass Holding LLC, which, through its wholly-owned subsidiary, owns a world-class pellet production plant in Waycross, Georgia (GA). The deal also includes associated contracted terminal capacity in the Port of Savannah, GA.
Enviva Partners growing operational footprint across the US Southeast now includes nine wood pellet production plants and five deep-water export terminals across Virginia (VA), North Carolina (NC), South Carolina (SC), Georgia (GA), Alabama (AL), Mississippi (MS), and Florida (FL).
We are excited to welcome the entire Waycross team into the Enviva family. This is an important step for Enviva’s growth and we look forward to continuing to be a great employer, customer, and neighbor, and an important contributor to the State of Georgia, a community we now call home, said John Keppler, Chairman, and CEO of Enviva.
Nearing 5 million tonnes-per-annum of capacity
The newly acquired Waycross plant has been operating since 2011 and has a production capacity of approximately 800 000 tonnes per annum, all of which is exported through the Port of Savannah to Enviva’s customers under long-term take-or-pay off-take contracts, many of which extend until the mid-2040s.
Following the acquisition, Enviva’s total annual wood pellet production capacity is approximately 4.9 million tonnes. With the completed acquisition, the Waycross plant is now called, “Enviva Pellets Waycross.”
The Waycross plant, its leadership, and the entire team are a perfect match for Enviva, The Waycross team, under the exceptional leadership of Mark Gaddy, has been recognized for years for their commitment to and strong track record of safe operations and high performance. We look forward to working with Mark and his team in the years to come as we seek to build on their success, grow the business, and continue making a meaningful difference right now in the effort to fight climate change around the world, said Royal Smith, EVP of Operations of Enviva.
Enviva says its mission is to displace coal, grow more trees, and fight climate change and the Waycross plant acquisition diversifies the company’s manufacturing footprint and expands its operations in a region that supplies one-fifth of the timber used globally each year.
Enviva currently is integrating the plant into the wider Enviva organization and looks forward to working closely with local leaders, private forest landowners, and conservation organizations to continue to make a positive impact across the State of Georgia.
BMO Capital Markets advised the Partnership and Vinson & Elkins LLP served as legal counsel on the transaction.