Lignetics, Inc. announced the acquisition of the assets of GF Funding LLC (whose facility was formerly known as Geneva Wood Fuels), expanding its footprint into Maine and upper New England. Lignetics is the largest residential wood pellet manufacturing company in the U.S. which now has a production capacity of approximately 550,000 tons of wood pellets per year. The company is the only pellet manufacturing company that has wood pellet manufacturing plants on both the East Coast and the West Coast in six plant locations in the states of Maine, Oregon, Idaho, West Virginia and Virginia.

Financing for the transaction was provided by Taglich Private Equity LLC, 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. Will Morris, Managing Director of Taglich Private Equity noted that Lignetics continues to be interested in exploring additional add-on acquisitions.

Lignetics was founded in 1983 and is one of the founding pioneers of manufacturing premium wood pellets and Pres-to-Logs® fire logs for home heating. Lignetics offers a broad array of products that include wood fuel pellets in bagged and bulk form, animal bedding pellets and shavings, BBQ pellets in a variety of flavors and compressed wood bricks and logs.

Lignetics acquired the wood pellet manufacturing facility of GF Funding LLC, based in Strong, Maine, which produces hardwood pellet fuel for residential and commercial use. The facility produces Maine's Choice and Geneva Wood Pellets brands of residential hardwood pellet fuel which can be found at independent retailers and select chains throughout the Northeast.

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 $500 million funded primarily with capital provided by Taglich Brothers, Inc., a full service brokerage firm managing capital in both public and private investments.