ReSolve seeks investor or buyer for Lignia Wood Company - ReSolve Group UK

ReSolve seeks investor or buyer for Lignia Wood Company

ReSolve Group UK

ReSolve seeks investor or buyer for Lignia Wood Company

Partners from ReSolve have been appointed as Administrators to Lignia Wood Company (“Lignia” or the “Company”), a producer of sustainable FSC-certified modified timber for the construction and marine industry globally.

The Administrators are pleased to offer an opportunity for introduction of rescue capital or sale of  Lignia’s business and assets.

 

Lignia has a proprietary and patented process that modifies wood to improve its appearance and properties, thereby giving wood products a longer life. Lignia’s products are currently used as cladding,  decking and in joinery (windows and doors) in residential and commercial buildings and the Lignia brand is highly valued by the building and architectural professions. The Company is currently experiencing an increase in demand due to its products’ beauty, durability and availability, especially in the face of hardwood shortages around the world. Lignia wood products also have fire-retardant properties, which is a world-first. The Company exports to North America, Europe and Australasia.

Lignia began commercial production and sales in the summer of 2019. It built momentum from the onset, however due to the global COVID-19 pandemic, sales were impacted. During COVID-19, the Company achieved strong operational and R&D progress however it did not secure the necessary funds to continue to develop and grow its product offering to take advantage of the global modified wood market. This market is trending towards more sustainable building products and is projected to grow at a CAGR of 9.6% and reach a market value of US$1.48 billion by 2026.

ReSolve Partner, Chris Farrington, commented:

“Early stage businesses that under normal circumstances would have been healthy and on a clear path to profitability have found their balance sheets squeezed by COVID-19 and unable to secure the necessary capital for next-stage growth and development. Companies like Lignia, which has sound fundamentals and growth prospects, is one of them. We are confident that we will find a new owner that seeks to capitalise on the sustainable wood trend.”

ReSolve is seeking an investor or  buyer for the business and assets of Lignia and anyone interested is encouraged to contact Shanice Austin at shanice.austin@resolvegroupuk.com as soon as possible.

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