DLA Piper (Canada) LLP, in conjunction with DLA Piper LLP (US), acted as lead counsel for Pinnacle Renewable Holdings Inc. (“Pinnacle”) in the acquisition of a 70% interest in an operating industrial wood pellet production facility located in Aliceville, Alabama (the “Aliceville Facility”) from The Westervelt Company (“Westervelt”) for approximately US$37.1 million.

Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer of wood pellets in the world. The purchase of the Aliceville Facility was finalized on October 15, 2018 and was funded through a draw on Pinnacle’s credit facility and cash on hand.

Westervelt, an Alabama based diversified land resources company, will retain a 30 percent interest in the Aliceville Facility and is currently expanding its production. The partnership between Pinnacle and Westervelt seeks to optimize asset configuration, distribution logistics and fibre supply. As part of the transaction, and consistent with Pinnacle's operating strategy, the Aliceville Facility has now entered into long-term wood fibre supply contracts for residuals with several large local sawmills.

The DLA Piper Canada deal team consisted of Brian Hiebert, Robert Groves and Michael Mjanes in Vancouver. The US deal team consisted of Sam Snider, Frank Layson, Amy Kluesner, Kevin Gooch and Glenn Williams in Atlanta and Lee Sheller in Baltimore.
DLA Piper’s global M&A practice has acted on more M&A transactions since 2005 to date than any other law firm. With the support of over 1,000 corporate lawyers globally we regularly assist clients with all aspects of complex domestic and cross-border corporate transactions. DLA Piper Canada’s Forestry Law group is one of our longest-standing practice areas. We advise and represent clients across Canada and abroad on virtually all issues affecting the forest sector.