Taglich Private Equity Completes Acquisition of Lignetics, Inc.

March 18, 2014                   

FOR MORE INFORMATION: Ken Tucker (208) 263-0564
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Taglich Private Equity Completes Acquisition of Lignetics, Inc.

Sandpoint, Idaho – Ken Tucker, CEO of Lignetics, Inc. (“Lignetics”), announced today the acquisition of Lignetics by Taglich Private Equity LLC (“Taglich”), Management and Gladstone Capital Corporation, who provided subordinated debt and equity financing, along with Texas Capital Bank, who provided senior debt in support of the transaction.  “Completing this transaction marks the beginning of an exciting new chapter in Lignetics’ history as the market leader in the residential wood pellet industry,” Tucker said.  “The management team of Lignetics is very excited to be partnering with Taglich, and looks forward to their support in our Company’s continued growth and development.”

Tucker also noted that the transaction will give Lignetics the capital base to pursue expansion plans.  “We were looking for investors that would bring stable leadership to the company and a long term view, and this transaction has accomplished that,” said Tucker.  “We are excited about the growth opportunities in our business and believe we have chosen excellent partners to support us.”  

William Morris, Managing Director of Taglich Private Equity added, “Taglich is excited about our investment in Lignetics and we are proud to be able to support the Management Team in the continued growth of the organization, both organically and through add-on acquisitions.  We view our investment as a true partnership with Management and are very excited about the Company’s future growth prospects.”

Founded in 1983 and headquartered in Sandpoint, ID, Lignetics manufactures and distributes branded wood pellets from its three U.S. production facilities.  With more than 30 years in the wood pellet industry, Lignetics is one of the founding pioneers of manufacturing premium wood pellets and Pres-to-Logs® fire logs for home heating.  Lignetics has a long tradition of providing the highest quality wood pellets used as a renewable fuel for home and industrial heating, animal bedding under its “EZ Equine” brand, absorption products used in the oil & gas industry as well as barbeque wood pellets.  Lignetics also manufactures all-natural Pres-to-Logs® fire logs, which along with their wood pellets, are 100% renewable and are generated from recycled sawdust at lumber and flooring manufacturing facilities that could otherwise be destined for landfills.  Only all-natural materials are used in the production of Lignetics wood pellets and Pres-to-Logs® fire logs, ensuring a clean and safe burn.

Taglich Private Equity LLC is a financial sponsor which has been investing since 2001 in lower middle market manufacturing, business service and consumer product companies.  Taglich has completed transactions totaling over $450 million funded primarily with capital provided by Taglich Brothers, Inc., a full service brokerage firm managing capital in both public and private investments.  Taglich focuses on finding sound investment opportunities with capable management and delivering significant growth resources and capital to portfolio investments.  For more information on Taglich Private Equity LLC please visit www.taglichpe.com.   

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