Power generation business Drax Group has agreed to acquire a remaining minority interest in its Alabama Pellets joint venture from Two Rivers Lumber for $22.0m in cash.
Drax said on Monday that the acquisition of Pinnacle Renewable Energy in April 2021 included a change of control provision over Alabama Pellets, which is made up of the Aliceville and Demopolis pellet plants, in which Two Rivers held a 10% interest.
“The acquisition will provide Drax with net economic control over a further 66,000 tonnes of sustainable biomass production capacity per annum, rights over land associated with Demopolis, and extend long-term fibre supply arrangements,” said Drax.
The FTSE 250-listed group also noted that completion was expected to take place before the end of October.
Reporting by Iain Gilbert at Sharecast.com
