Rentech Acquires Wood Chip Processor Fulghum Fibres; Also Enters Growing Wood Pellet Industry
Fulghum Fibres is the leading provider of contract wood chip processing services in the U.S., with approximately $10 million of Operating Income and $20 million of EBITDA expected in 2013.
LOS ANGELES, May 02, 2013 (BUSINESS WIRE) -- --Two former wood processing facilities to be acquired and converted to produce wood pellets, projected to have combined stabilized Operating Income of $3 million and EBITDA of $15 million.
--Contracts in place for the sale and transport of approximately 445,000 annual metric tons of wood pellets over ten years; sustainably managed wood supply from Crown forests in Ontario, Canada; and joint venture development and construction partner.
--Rentech enters wood fibre processing business with stable cash flow, construction and operating expertise, and long-term contracts structured for stable margins and cash flow.
--Businesses provide Rentech with diversification of margins, products and markets and entry into rapidly growing pellet industry.