Pinnacle Renewable Holdings acquires 70% stake in Alabama industrial wood pellet production facility

On October 15, 2018, Pinnacle Renewable Holdings Inc. (“Pinnacle”), a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world, completed its previously announced acquisition of a 70% interest in an operating industrial wood pellet production pellet production facility located in Aliceville, Alabama, from The Westervelt Co. (“Westervelt”) for approximately US$37.1 million. Westervelt will retain a 30% interest in the Aliceville Facility. 

Pinnacle funded the purchase of its 70% interest in the Aliceville Facility through a draw on its credit facility and cash on hand. 

Pinnacle was represented by Ranj Sangra, General Counsel & Corporate Secretary. 

Westervelt was represented by Ray Robbins, Vice President, Secretary & General Counsel. 

DLA Piper acted as lead counsel to Pinnacle in the US and Canada with a team that included Brian Hiebert, Sam Snider, Frank Layson, Robert Groves, Lee Sheller, Amy Kluesner, Kevin Gooch, Michael Mjanes and Glenn Williams. 

Davies Ward Phillips & Vineberg LLP acted as counsel to The Bank of Nova Scotia, the administrative agent for a syndicate of lenders, with a team that included Joel Scoler, Peter Martorelli and Stuart Berger. Cari Grieb of Chapman and Cutler LLP acted as US agent counsel for the lending syndicate. 

Maynard Cooper & Gale, P.C. acted as lead counsel to Westervelt with a team that included Jim McLaughlin, David Humber and Joseph Smith.

Lawyer(s)

Ranj Sangra Joel M. Scoler

Firm(s)

Davies Ward Phillips & Vineberg LLP