A Wawa wood pelletizing mill has struck a mega-million dollar deal with a Mississauga hardwood flooring company to expand their business and distribute their technology across North America and possibly even internationally.
“It’s a marriage made in heaven,” said Gerry Bugyra, president of NorWa Manufacturing and Distribution Company Ltd., of his pending acquisition by Starwood Manufacturing. The southern Ontario company executed a letter of intent in May to acquire all of NorWa’s Wawa operating assets after the completion of a 90-day due diligence period.
The deal, worth “ten of millions of dollars” in new investment and potential sales, will allow the Wawa entrepreneur to fully realize his dreams of not only expanding his operation, but make inroads into the global bio-fuel marketplace and establish small pelletizer mills across North America.
“It’s all what I’ve been working towards for the last six years.”
In a May 15 news release, Starwood president Peter Prytula calls his company’s acquisition of NorWa an “important step” in their strategic plan of developing an environmentally friendly way of disposing of their wood waste. The purchase price was not disclosed, but the transaction is to be finalized sometime during the third quarter of this year.
“In order to bring this company forward I need large investment,” said Bugyra, who established NorWa in 2002 with investment from family and friends along with a $125,000 start-up loan from the Superior East Community Development Corporation. “At least now I can go ahead with my plans in a very positive manner.
“It’s nice to team up with a company already in the wood industry (that has) opportunities with wood resources stretching to Bosnia and the Ukraine.” Both companies are investigating opportunities in Brazil and Germany.
Starwood specializes in the manufacturing and coating of single strip hardwood flooring produced from Canadian, American and European oak, ash, beech, maple and Guyana exotic wood.
Almost two months in the making, Bugyra says negotiations with Starwood turned serious after company officials flew up to Wawa during the spring to view his hammer mill operation. Bugyra says they came away impressed with his efficient prototype punch-die system, that was developed years before by a British Columbia environmental firm.
Bugyra says pellets are also in high demand by greenhouse operators and co-generation energy producers everywhere. “The driving force is the cost of fossil fuels and in the long run it’s a great opportunity for the North.”
For Wawa, it will mean expanding a five-member workforce from one shift to three, six days a week. Bugyra intends to double his current production beyond 30,000 to 35,000 tonnes annually to more than 70,000 tonnes and plans to expand his 2,400-square-foot facility on Mills Drive to include a warehouse and some new drying equipment.
