Powder/Bulk Solids is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Utility Menu

Powder/Bulk Solids

The Source for Dry Processing and Bulk Handling Technology

European Biomass Firm Buys Assets of Texas Pellets Inc.

October 23, 2019
The Texas Pellets plant in Woodville, TX. Image courtesy of Graanul Invest
The Texas Pellets plant in Woodville, TX. Image courtesy of Graanul Invest

European pellet manufacturer Graanul Invest has completed its $63 million acquisition of Texas Pellets Inc. and German Pellets Texas Inc. (“Texas Pellets”) after successfully bidding on the firms’ assets in a May 9 auction, middle market investment bank Configure Partners LLC announced in a release Monday. 

As part of the deal, Graanul Invest purchased Texas Pellets’ Woodville, TX manufacturing facility, which has a 500,000 mt nameplate capacity, and a pellet storage facility and shipping terminal in Port Arthur, TX referred to as “POPA.”

Configure Partners LLC represented Texas Pellets as an investment banker after the firm filed for bankruptcy in 2016, assisting the company in assessing its strategic alternatives and providing guidance on various aspects of the sale process. While the company was in Chapter 11 in 2017, a fire damaged the firm’s ship loader and another blaze later in the year caused a silo to collapse.

Over the last two years, Texas Pellets has worked to rebuild the POPA facility and install new operational and safety assets, according to Configure. 

“The two fires, the resulting reconstruction process, and other issues that arose along the way were significant items that needed to be expertly explained and properly positioned to potential buyers in order to elicit the price that was achieved,” Jay Jacquin, a managing director at Configure, said in a statement. 

The final price was 50% higher than the stalking horse bid initially made by Graanul Invest.  

“We have been looking for a suitable opportunity to start pellet production in the United States for over 10 years,” Raul Kirjanen, the chief executive officer of Graanul Invest, said in a May company press release announcing its successful bid on Texas Pellets. “Once we have successfully completed this transaction, we will have firmly established our presence in North America.”

Graanul Invest said the Texas Pellet assets will boost its production capacity by up to 25%.  

For more news headlines, articles, and equipment reviews, visit our Equipment Zones

More Biomass Industry articles:

Fire Breaks Out at Biomass Energy Plant in Michigan

SMART Biomass Storage and Feeding System

Bioenergy Firm Enexor to Open $5M Plant in Tennessee