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USTC acquires majority stake in CM Biomass to accelerate growth and green ambitions

March 25, 2021

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USTC announced today that it has acquired a majority stake in CM Biomass, the world’s largest independent wood pellet trading company, in an agreement that consolidates USTC as a global force within the shipping and trading industry. CM Biomass’ activities are a natural extension of the USTC Group’s current areas of operation and adds significant new expertise and knowledge particularly within sustainable energy.

USTC, which has a long history and comprehensive experience within commodity trade, shipping, and logistics, has acquired60% of CM Biomass, a company in the Copenhagen Merchants Group. The remaining 40% will be held by the existing owners of CM Biomass. The CM Biomass management team and the organization will remain unchanged with Simon Rodian Christensen as its CEO.CM Biomass will form a new and separate entity in the USTC portfolio that already covers companies like Bunker Holding, SDK FREJA, Uni-Tankers, and Unit IT.

CM Biomass operates in a sector where USTC has broad experience and a very solid organisation. With access to the full global USTC set-up of local offices, industry expertise and specialised group functions and strong financial background, CM Biomass is set to continue and accelerate its current growth trajectory. The objective is to build on its global leading position within sourcing and distribution of sustainable biomass which is one of the key components in the green transformation of the international power and heat production.

Sustainable energy

In addition to being the world’s largest independent wood pellet trading companies for both utility companies and the residential market, CM Biomass also has a strong focus on sustainable sourcing and an ambitious strategy of becoming a significant player in production of wood pellets and alternative biomass based on residues. USTC has strong ambitions to support and enable the global transition to sustainable energy within the industries the Group is engaged in. The acquisition of the majority of CM Biomass is very intentionally aligned with that long-term agenda.

“I am very pleased to welcome CM Biomass to our Group. Since the company was founded, it has grown rapidly into a world leader within its industry. Not only will CM Biomass provide value to USTC’s portfolio of companies, but it will also add an exciting new sustainable angle to the trading and shipping industry as a natural extension of our ongoing activities. We see great potential in the synergies that CM Biomass will bring to our existing operation which we believe will help elevate the company to the next level,” says Nina Østergaard Borris, owner and COO of USTC Group.

Founded on shared family values

USTC and CM Biomass stand on a foundation of similar and strong values deeply rooted in family-ownership. Both owner-families have the utmost respect for each other and find USTC to be the perfect new fit for CM Biomass.

“We have been through a fantastic journey and are now looking into even more exciting opportunities globally. To fulfil our ambitions for CM Biomass we are pleased that we have found a perfect match with USTC and personally with Torben Østergaard-Nielsen and Nina Østergaard Borris. A family and a company that have indeed been through a development from a regional to a truly global leader in a large industry and we see many parallels to our position and the biomass industry. With all the strength, experience, and competencies from the USTC Group behind us, the future sure looks bright and exciting,” says Simon Rodian Christensen, owner and CEO of CM Biomass.

CM Biomass was founded in 2009 as part of Copenhagen Merchants (CM) Group, which was established as a brokerage company in 1977 by Torben Christensen. Other activities in the Copenhagen Merchants Group are not affected by the CM Biomass transaction.

The transaction is subject to the formal approval of authorities and the value of the transaction will not be disclosed.

Media enquires

Group Communications

Phone: +45 7879 8228

press@ustc.dk

 

Terms of user for images

Please note that USTC Group owned images may only be used in editorial publications.

CM Biomass employs more than 60 dedicated professionals in 8 countries and works with a variety of clients across several markets trading more than 3.5 million tons industrial and premium grade pellets per year. In 2020, CM Biomass realized an annual revenue of DKK 3 billion with profit before tax of DKK 130 million and with continued growth in in 2022. CM Biomass is a break out company of the Copenhagen Merchants Group both of which are under management by second generation owner Simon Rodian Christensen.