On Apr. 13, 2021, Drax Group plc completed its all-cash acquisition of all of the issued and outstanding shares of Pinnacle Renewable Energy Inc. at a price of $11.30 per share, representing a premium of 13 per cent based on the closing market price as at Feb. 5, 2020 of $10.04 per share and valuing the fully diluted equity of Pinnacle at $385 million with an implied enterprise value of $741 million, including $356 million of net debt.
The acquisition of Pinnacle, an international producer and supplier of sustainable biomass, aims to position Drax as the world’s leading sustainable biomass generation and supply business.
Drax is a supplier of renewable energy solutions to industrial and business customers.
Pinnacle is the second largest producer of industrial wood pellets in the world.
Osler, Hoskin & Harcourt LLP, working together with Slaughter and May, advised Drax with a team consisting of
Manny Pressman,
Alex Gorka,
Brett Anderson,
Jesany Killam-Michel,
Bradley Lastman (corporate),
Paula Olexiuk,
Aqeel Virk,
Storme McKop (commercial),
Firoz Ahmed,
Masoud Tasharofi (tax),
Michelle Lally,
Christopher Naudie,
Gajan Sathananthan (regulatory),
Damian Rigolo,
Shari Cohen (employment),
Ryan Nielsen,
Sarah Sharp (real estate),
Jonathan Marin (pensions),
Patrick Welsh (environmental).
Slaughter and May also acted as legal advisor to Drax.
Stikeman Elliott LLP is acting as legal advisor to Pinnacle with a team including
Sean Vanderpol,
Daniel Borlack,
Christian Brands,
Brian Lynch,
Christopher Sullivan (corporate/M&A);
Michael Kilby,
Michael Rosenstock (competition);
Lindsay Gwyer (tax);
Lorna Cuthbert,
Mari Maimets (employment);
Alyson Frankie (pensions and benefits);
David Brown (litigation);
Rachel Hutton,
Simone Mains (real estate).
Kirkland & Ellis LLP is also acting as legal advisor to Pinnacle.