Mergers and Acquisitions

Drax Group plc in its acquisition of Pinnacle Renewable Energy

Drax Group plc
Key Contact
Emmanuel Pressman

National Co-Chair, Toronto

Team
Alex Gorka

Partner, Corporate, Toronto

Brett Anderson

Partner, Corporate, Toronto

Bradley Lastman

Associate, Corporate, Toronto

Paula Olexiuk

Partner, Energy and Construction, Calgary

Firoz Ahmed

Partner, Tax, Toronto

Michelle Lally

Partner, Competition/Antitrust and Foreign Investment, Toronto

Christopher Naudie

Partner, Disputes, Toronto

Damian Rigolo

Partner, Employment and Labour, Toronto

Ryan Nielsen

Partner, Real Estate, Toronto

Sarah Sharp

Associate, Real Estate, Toronto

Jonathan Marin

Partner, Pension and Benefits, Toronto

On April 13, 2021, Drax Group plc completed its all-cash acquisition of all of the issued and outstanding shares of Pinnacle Renewable Energy Inc. at a price of $11.30 per share (representing a premium of 13% based on the closing market price as at February 5, 2020 of $10.04 per share and valuing the fully diluted equity of Pinnacle at $385 million with an implied enterprise value of $741 million, including $356 million of net debt).

The acquisition of Pinnacle, a major international producer and supplier of sustainable biomass, will position Drax as the world’s leading sustainable biomass generation and supply business.

Drax is a leading supplier of renewable energy solutions to industrial and business customers.

Pinnacle is the second largest producer of industrial wood pellets in the world.

Osler, Hoskin & Harcourt LLP, working together with Slaughter and May, advised Drax with a team consisting of Manny Pressman, Alex Gorka, Brett Anderson, Jesany Killam-Michel and Bradley Lastman (Corporate), Paula Olexiuk, Aqeel Virk and Storme McKop (Commercial), Firoz Ahmed and Masoud Tasharofi (Tax), Michelle Lally, Christopher Naudie and Gajan Sathananthan (Regulatory), Damian Rigolo and Shari Cohen (Employment), Ryan Nielsen and Sarah Sharp (Real Estate), Jonathan Marin (Pensions) and Patrick Welsh (Environmental).

Value
$741 million
Date Closed
April 13, 2021
Lead Office
Toronto
Key Contact
Emmanuel Pressman

National Co-Chair, Toronto

Team
Alex Gorka

Partner, Corporate, Toronto

Brett Anderson

Partner, Corporate, Toronto

Bradley Lastman

Associate, Corporate, Toronto

Paula Olexiuk

Partner, Energy and Construction, Calgary

Firoz Ahmed

Partner, Tax, Toronto

Michelle Lally

Partner, Competition/Antitrust and Foreign Investment, Toronto

Christopher Naudie

Partner, Disputes, Toronto

Damian Rigolo

Partner, Employment and Labour, Toronto

Ryan Nielsen

Partner, Real Estate, Toronto

Sarah Sharp

Associate, Real Estate, Toronto

Jonathan Marin

Partner, Pension and Benefits, Toronto