PHI Group has signed a Letter of Intent to acquire a wood pellet manufacturing company in Southeastern United States, as the company said in the press release received by Lesprom Network.
The identity of the target company and certain details will be kept confidential until closing. The total purchase price for 100% of the operation, excluding liabilities and cash and cash equivalents, is approximately $9 million. The transaction is subject to entering into a definitive purchase and sale agreement, customary conditions, due diligence and financing commitments.
The 36,000 square-foot manufacturing plant and storage facility, located on 18 acres, were constructed in 2009 and went into production in 2010. Annual production was approximately 100,000 MT/year.
The Company expects to sign the definitive purchase and sale agreement in the next two weeks and will continue to complete due diligence and secure the required purchase and operating capital in order to close the transaction.
PHI Group is investigating options for production and sales and marketing, including adding new product lines following the closing.
PHI Group is a U.S. public company focused on conventional energy and renewables.