Enviva Partners receives offer on Sampson wood pellet production plant

The transaction also includes a 15-year, 95 000 tpy off-take contract with the Hancock JV and a third-party shipping contract. As previously announced, the board of directors of the Partnership’s general partner has formed a Conflicts Committee comprised solely of independent directors to evaluate the offer. The final purchase price and other terms are subject to negotiation with, and approval of, the Conflicts Committee, but the Partnership currently expects the final purchase price to be between US$170 million and US$180 million. Assuming terms of the acquisition are agreed upon, the Partnership expects the transaction to close on or about 3 January 2017.

Construction of the Sampson plant is complete and the plant is producing wood pellets for sale. The Sampson plant is expected to produce approximately 500 000 tpy of wood pellets in 2017 and to reach its full production capacity of approximately 600 000 tpy in 2019.

The plant is expected to generate incremental Adjusted EBITDA of approximately US$22 million for 2017, increasing to approximately US$27 million once full production capacity is achieved. Assuming completion of the drop-down acquisition, the weighted average remaining term of the Partnership’s off-take contracts would extend to 9.7 years and our contracted revenue backlog would increase to US$5.7 billion as of 1 January 2017.

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