Enviva Partners, LP (NYSE:EVA) entered into agreement to acquire Georgia Biomass Holding LLC from innogy SE (XTRA:IGY) for approximately $180 million on June 18, 2020. The consideration will be paid in cash and is subject to customary adjustments. In a related transaction, Enviva Partners also has agreed to purchase Enviva Pellets Greenwood Holdings II, LLC. To finance the acquisition, Enviva Partners signed a purchase agreement for the sale of an aggregate 6.2 million common units in a private placement at a purchase price of $32.5 per unit which closed on June 23, 2020. In addition, Enviva Partners commenced an offering of an additional $152.9 million of 6.5% senior unsecured notes due 2026. Enviva Partners intends to use the net proceeds from the offering of additional notes to fund a portion of the cash consideration for the acquisition, to repay borrowings under its revolving credit facility, and for general partnership purposes.

The closing of the transaction is subject to antitrust clearance – both in the UK and in the US and customary closing conditions. As of July 16, 2020, the transaction is approved by Federal Trade Commission. The transaction is expected to be completed in the third quarter of 2020. Caroline Blitzer Phillips, Tzvi Werzberger, Ryan Carney, David Cole, Darren Tucker, Ramey Layne, Chris Mathiesen, Scot Dixon, Brian Bloom, Christie Alcalá, Sean Becker and Sarah Mitchell of Vinson & Elkins LLP acted as legal advisors to Enviva Partners, LP. HSBC Trinkaus & Burkhardt AG acted as financial advisor to innogy SE. Bank of Montreal acted as financial advisor for Enviva Partners. K&L Gates LLP advised RWE Group on the deal. The K&L team was led by partners David Edgar and Thomas Lappe.

Enviva Partners, LP (NYSE:EVA) completed the acquisition of Georgia Biomass Holding LLC from innogy SE (XTRA:IGY) for approximately $170 million on July 31, 2020. Georgia Biomass has $1.5 million as cash. The deal value includes cash paid on closing as $168.3 million and settlement of payable from Enviva Partners to Georgia Biomass. In July 2020, Enviva Partnersissued an additional $150.0 million aggregate principal amount of the 2026 Notes at an offering price of 103.75% of the principal amount. Enviva Partners received net proceeds of approximately $153.6 million from the Additional Notes offering after deducting discounts and commissions to fund the acquisition.