Enviva Partners, LP has agreed to purchase a wood pellet production plant in Waycross, Georgia with associated export terminal capacity in Savannah, Georgia from Innogy SE and also has agreed to purchase the wood pellet production plant in Greenwood, South Carolina.
Enviva Partners, LP has agreed to purchase Georgia Biomass Holding LLC, which, through its wholly owned subsidiary, owns a wood pellet production plant in Waycross, Georgia, from Innogy SE and one of its subsidiaries for a purchase price of $175 million in cash, subject to customary adjustments. The Waycross plant has been operating since 2011 and has a production capacity of approximately 800,000 MTPY.
The Waycross plant exports its wood pellets through a terminal at the Port of Savannah, Georgia under a long-term terminal lease and associated services agreement. Enviva Partners, LP expects the Georgia biomass acquisition to close in the 3Q 2020, subject to customary closing conditions.
Enviva Partners, LP also has agreed to purchase Enviva Pellets Greenwood Holdings II, LLC, which, through its wholly owned subsidiaries, owns a wood pellet production plant in Greenwood, South Carolina, from its sponsor for cash consideration of $132 million and the assumption of a $40 million third-party promissory note bearing interest at 2.5% per year. The Greenwood plant has been operating since 2016 and its wood pellets are exported through the Partnership’s terminal at the Port of Wilmington, North Carolina. Enviva Partners, LP plans to invest $28 million to expand the Greenwood plant’s production capacity to 600,000 MTPY by the end of 2021, subject to receiving the necessary permits.
Enviva Partners, LP expects the Greenwood acquisition to close on or about July 1, 2020.
Enviva Partners, LP is a publicly traded master limited partnership that aggregates a natural resource, wood fiber, and processes it into a transportable form, wood pellets.
