Add-on Acquisition • Forest Products

Lignetics Acquires Fiber By-Products

On April 17, 2023, Lignetics acquired forest products company Fiber By-Products from Beringea

Acquisition Context
  • This is Lignetics’ 5th transaction in the Forest Products sector.
  • This is Lignetics’ 5th transaction in the United States.
  • This is Lignetics’ 1st transaction in Michigan.

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M&A Deal Summary

Date April 17, 2023
Target Fiber By-Products
Sector Forest Products
Buyer(s) Lignetics
Sellers(s) Beringea
Deal Type Add-on Acquisition

Target Company

Fiber By-Products

White Pigeon, Michigan, United States
Fiber By-Products is a processor, recycler, and manufacturer of wood pellets for home heating. Fiber By-Products collects wood by-products from sawmills & wood shops and further process the fiber into wood pellets, wood flour, wood shavings, and landscaping mulch. Fiber By-Products was founded in White Pigeon, Michigan.
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Buyer Overview 1

Buyer

Lignetics

Broomfield, Colorado, United States

Category Company
Founded 1983
Sector Forest Products
DESCRIPTION

Lignetics is a residential wood pellet manufacturing company in the U.S. The company’s innovative eco-friendly offering includes premium wood pellets for super-efficient home heating, barbecue pellets that naturally seal in perfect wood-fired flavor, and a superior all-natural high-performance cat litter. The company delivers these innovative all-natural products through national retail partners and directly to consumers via the only national network of wood pellet manufacturing plants spread across the U.S. and Canada with 22 different plant locations. Lignetics was founded in 1983 and is based in Broomfield, Colorado.


Deal Context for Buyer #
Overall 5 of 5
Sector: Forest Products 5 of 5
Type: Add-on Acquisition 4 of 4
State: Michigan 1 of 1
Country: United States 5 of 5
Year: 2023 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-04-16 GLRE

Hayward, Wisconsin, United States

GLRE is a wood pellet manufacturer specializing in BBQ wood pellets, primarily under the Lumber Jack Grilling Pellets brand. The Company is the only round log pellet mill in the world that has devoted its future capacity to produce this product, and it is the only mill making a 5.5mm size pellet. GLRE serves over 1,200 recurring customers in various BBQ sub-sectors across the globe including seasoning, sporting goods, leisure, and professional meat smoking companies. GLRE is based in Hayward, Wisconsin.

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Seller Profile 1

SELLER

Beringea

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 715M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Beringea LLP is a private equity firm focused on growth-oriented company investments in the Midwest US and the UK. Beringea looks to invest $2 to $10 million of equity or junior capital in profitable companies with 5 million and higher in revenue. Funds are used to support business expansions and growth, ownership transitions, leveraged buyouts, recapitalization, and refinancings. The Firm does not have any sector preferences and generally seeks businesses with proven business models and defensible market positions. Beringea was formed in 1988 and is based in London.


Deal Context for Seller #
Overall 42 of 46
Sector: Forest Products 1 of 1
Type: Add-on Acquisition 27 of 30
State: Michigan 8 of 10
Country: United States 17 of 19
Year: 2023 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-02-07 Cipher

London, United Kingdom

Cipher is a provider of patent analytics software designed to enable businesses to access data about patented technology with greater speed and accuracy. Cipher harnesses artificial intelligence and machine learning algorithms to classify, identify, and analyze patents in ways that have traditionally involved intellectual property specialists in an expensive and time-consuming process. Cipher was founded in 2013 and is based in London, United Kingdom.

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FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-09-13 Optilogic

Ann Arbor, Michigan, United States

Optilogic offers cloud-native supply chain network design solutions that enable businesses to evaluate trade-offs across financial performance, service levels, and systemic risk to design resilient supply chains even in the most dynamic, challenging environments. Optilogic is based in Ann Arbor, Michigan.

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