KREMMLING, CO (March 15th, 2013) — Confluence Energy, LLC, announced today that it has completed the acquisition of certain assets of Rocky Mountain Pellets, a wood pellet mill operator located in northwest Colorado and one of the largest manufacturing plants in the western United States. The assets were purchased from Rocky Mountain Pellet, LLC and Rocky Mountain Pellets Holding.
Confluence Energy, which began operations in Kremmling, CO in 2008, acquired one building, approximately 90 acres on which the plant is located, plus all fixed and mobile assets. With the completion of the deal, Confluence Energy gains facilities housing four pellet presses with the capacity to produce 120,000 tons of wood pellets annually.
Confluence Energy obtained an undisclosed amount of funding through an Industrial Revenue Bond for the acquisition. The loan specifics also were undisclosed. This transaction makes Confluence Energy the largest wood pellet manufacturer in the western US, with more than 225,000 tons of annual production capacity.
“We’ve gained a turnkey operation in the intermountain West, one with a skilled workforce and an established reputation as a super-premium pellets manufacturer, not only in this region but also in the Midwest and East Coast. The acquisition supports our complete utilization of the material we receive from our 10 year USFS stewardship agreement. We can immediately put the extra capacity to work to meet our customers growing needs.” said Mark Mathis, CEO of Confluence Energy.
Mr. Mathis added, “We expect the plant to be fully operational after making some minor modification later this quarter.”