Lignetics acquires the Marth Companies
Lignetics Inc.
May 23, 2017
BY Lignetics Inc.
Lignetics Inc. recently announced the acquisition of the Marth Companies LLC which includes manufacturing plants in Marathon, Athens, and Peshtigo, Wisconsin, as well as the Marth Transportation trucking assets, giving Lignetics a strong position in the Wisconsin and upper mid-west markets. Lignetics is the largest residential wood pellet manufacturing company in the U.S. which now has a production capacity of approximately 650,000 tons of wood pellets per year. The company is the only pellet manufacturing company that has wood pellet manufacturing plants in the East, Central, and West geography with nine plant locations in the states of Maine, Oregon, Idaho, West Virginia, Virginia, Wisconsin.
Brett Jordan, CEO of Lignetics stated, "Completing this acquisition is a significant step in continuing to execute our strategy to expand our geographic footprint in the U.S. and remain the market leader in the residential wood pellet industry.” Jordan added, “The Marth Companies have long been the leader in the Wisconsin market with a diverse product offering of high quality wood products and relationships with an amazing group of customers managed by a very talented team, whose goal is to continue to provide a superior product and excellent customer service.”
Jerry Natzke, owner of the Marth Companies LLC will stay on to manage the three Wisconsin plants and the trucking operations as General Manager of Lignetics central division. Jerry said of the transaction, “After careful consideration, it was clear to me that Lignetics and Marth have a shared vision of how we can create a business that can serve our customers, vendors, employees, and shareholders even better with merged operations. I am excited to bring these businesses together and continue to help build on the legacy of the Marth business as part of a larger entity.” Jerry will also continue with a minority ownership position in the new combined entity.
Financing for the transaction was provided by Taglich Private Equity LLC, management and Gladstone Capital Corp., who provided subordinated debt and equity financing, along with Texas Capital Bank, who provided syndicated senior debt, which included Sterling National Bank and River Valley Bank in support of the transaction. Will Morris, managing director of Taglich Private Equity, noted that Lignetics continues to be interested in exploring additional add-on acquisitions. “We are excited about this acquisition and the growth opportunities in our business to support our goal of being the largest and highest quality residential wood pellet manufacturing company in the U.S.,” stated Morris.
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