Ellex Advised on the Acquisition of Fortum District Heating Business in the Baltics for EUR 800 Million
March, 2021 - Lithuania
Partners Group, a leading global private markets firm, acting on behalf of its clients has signed an agreement to acquire the Fortum district heating business in the Baltics for the total consideration on a debt- and cash-free basis of EUR 800 million.
The transaction is subject to customary closing conditions and is expected to be completed in the second quarter of 2021. This will most likely be the biggest M&A transaction in the Baltics in 2021.
This investment reflects Partners Group's continuing commitment to transformational investing in assets that have a meaningful impact on the communities in which they operate.
Fortum provides district heating in five cities in the Baltics – Tartu and Pärnu in Estonia, Daugavpils and Jelgava in Latvia and Klaipeda in Lithuania. Further, in those cities Fortum owns four CHP plants as well as a 49% share of the Kaunas CHP (commissioned in 2020) in Lithuania, through a joint venture.
M&A partner Paulius Gruodis from Ellex office in Vilnius was leading the transaction in the Baltic states. Partners Group was advised by Ellex experts in Estonia: Partner Gerli Kivisoo, Counsel Triin Frosch, Senior Associates Anneli Krunks and Hanna Pahk, Associates Karin Tartu, Liisbeth Lillo and Karl Kreevald; in Latvia: Senior Partner Filips Klavins, Senior Counsel Iveta Ceple, Senior Associates Beata Plocina, Edvijs Zandars and Inese Freivalde, Associates Eduards Dzintars, Ints Skaldis, Kristers Losans and Marats Golovkins; and in Lithuania by Partners Paulius Gruodis, Giedrius Stasevičius and dr. Karolis Kačerauskas, Expert Ema Būtėnienė, Senior Associates Mantas Juška, Edvinas Beikauskas, Gintarė Skrolienė, Dominykas Užkurnys, Nerijus Patlabys and Associate Laura Paulaitė.
Partners Group is a leading global private market investment manager. Since 1996, the firm has invested over USD 145 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally.
Fortum is a European energy company with activities in more than 40 countries. It provides its customers with electricity, gas, heating and cooling as well as smart solutions to improve resource efficiency.
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