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EagleTree Capital LLC acquired Lignetics Inc. from Taglich Private Equity LLC and Mill Road Capital Management LLC.
No purchase price was given in the press release regarding the transaction.
Louisville-based Lignetics uses approximately 2 million tons of wood waste annually to produce up to 1.4 million tons of wood pellets for household heating, barbecues, and the production of cat litter and horse bedding. It is sold at retailers of more than a dozen brands, including Green Supreme, Bear Mountain BBQ, Catalyst Pet and EZ Equine.
The company has 22 manufacturing plants. A company profile on LinkedIn states that it has 350 employees when it has 13 factories. It acquired several companies under Taglich, including Great Lakes Renewable Energy, a Wisconsin-based barbecue wood pellet manufacturer in April.
EagleTree, a mid-market private equity investor based in New York City, has $4.8 billion in assets under management. The press release stated that the company plans to use the acquisition as a platform investment, which means it intends to make additional acquisitions starting from Lignetics.
It acquired Lignetics through EagleTree Partners V. Co-investors include Manulife Investment Management, Northwest Mutual Capital and Thrivent Financial.
"We see incredible growth opportunities in our barbecue pellet brand, catalyst cat litter and other new products under development," said Brett Jordan, chief executive officer of Lignetics, in a press release.
EagleTree Co-Managing Partner George Majoros Jr. said: "The company is well-positioned to take advantage of the appeal of residential pellet heating, pellet grilling and wood pet waste.
Taglich, headquartered in New York, acquired Lignetics in March 2014. It has invested between US$3 million and US$20 million in companies with annual revenues of US$15 million to US$150 million and EBITDA of US$4 million to US$15 million. It bought a majority stake in a niche consumer product manufacturer.
Mill Road Capital invests funds from state and corporate pension funds in small public companies. It was founded in 2004 by former Blackstone executives and is headquartered in Greenwich, Connecticut.
Taglich’s other backers include Gladstone Capital Corp. (Nasdaq: GLAD) in McLean, Virginia, which invested $7 million in debt financing from Southfield Mezzanine Capital LLC in Greenwich, and 2020 A round of financing of USD 8 million in August 2008.
Investment banker Raymond James and law firms Moss Adams and Dentons Durham Jones Pinegar provided consulting services to Lignetics. Jones Day Law Firm and Alvarez & Marsal Law Firm provided consulting services to EagleTree.
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