Gren signed an agreement to acquire the district heating business from E energija group. The business operates in 5 Lithuanian cities: Akmenė, Klaipėda, Trakai, Vilnius and Visaginas. The target has total generation capacity of 162 MW with annual energy production of approximately 320 GWh. This transaction is part of Gren’s growth strategy execution in the Northern European energy markets.
Gren, the Northern European green energy company, focuses on developing and providing sustainable energy solutions, primarily district heating, to meet its local communities’ needs in their daily lives while having a positive impact on the environment. Gren energy companies currently operate in Estonia, Latvia, and Lithuania. The business was acquired by Partners Group from Fortum in 2021.
“From the very beginning of our activities in Baltic countries, we were striving to offer green energy based on local renewables and waste. We strongly continue our green growth by acquiring additional assets that produce energy from over 90% of the biomass. We will continue all operations and obligations to our clients, employees and partners while adding more effectiveness and innovations to our joint businesses”, said Vitalijus Žuta, Lithuania Country Head of Gren.
“E energija group has developed and managed their district heating business in very professional manner over the years. We are looking forward on further expanding our businesses in Lithuania and we continue investments to the energy infrastructure benefitting customers and societies”, added Ilkka Niiranen, CEO of Gren Group.
“With this transaction E energija group has completed its strategic transition from being a district heating operator, towards becoming the leading wind and solar project developer and owner in the region. Local electricity generation from renewables has become even more important in the light of current geopolitical situation and with our portfolio of over 1000 MW renewable projects we are ready to strengthen our contribution to energy independence of Lithuanian energy sector”, said Gediminas Uloza, CEO of E energija group.
The transaction is subject to Competition Council approval and is expected to be completed in the second half of 2022.
Porta Finance acted as the exclusive financial advisor to Gren. Porta Finance advised Gren on the target valuation, coordination of due diligence, and negotiations with the seller.
Managing Partner, Porta Finance
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