“The goal of Enefit Green is to increase the share of wind and solar energy in the Baltics and Poland. We currently have six wind farms under construction in Finland, Estonia and Lithuania and four solar plants in Estonia, Latvia and Poland with a total capacity of 715 megawatts. The sale of the cogeneration assets using biomass will allow us to focus more on our strategic business direction in the future. The professional team at Brocēn provides a valuable foundation for Warmeston’s growth. We thank the team for their contribution and we wish them success for the future,” said Innar Kaasik, member of the board of directors and production director of Enefit Green.
“This is an important deal for Warmeston. The acquisition of the well-maintained and operated Brocen cogeneration plant and pellet plant in Latvia is an important step in the company’s strategy to acquire additional production assets in the Baltic Sea region. We believe that managed green energy based on renewable sources has a certain role in ensuring the security of supply of the energy system in the coming decades,” said Mait Kaup, CEO of Warmeston.
The subject of the transaction is the cogeneration business in Brocēni, whose assets include a cogeneration plant completed in 2016 and a pellet plant. The company has 39 employees, the electricity produced is sold to the Latvian electricity grid and the heat is used to dry raw materials in the adjacent pellet factory. The annual production of pellets amounts to 155,000 tonnes and the sale is made to energy companies, wholesalers and private individuals.
The value of the debt-free and cash-free transaction is €32 million and was financed by Swedbank Eesti. Following the transaction and asset transfer, the cogeneration plant, pellet plant and employees will continue to operate in the Warmeston Group.
Enefit Green was assisted in the preparation and execution of the transaction by LHV as financial advisor, KPMG as financial due diligence and TGS Baltic as legal advisor. Warmeston was advised by Superia Corporate Finance and Cobalt.
Enefit Green is one of the leading producers of renewable energy in the Baltic Sea region. The company’s shares are listed on the Nasdaq stock exchange in Tallinn and the company has almost 64,000 investors. Enefit Green is focused on developing wind and solar energy production capabilities to increase the availability of green energy and improve the energy security of its national markets. The company is currently building six wind farms in Finland, Estonia and Lithuania with a total capacity of 615 megawatts and four solar plants in Estonia, Latvia and Poland with a total capacity of 100 megawatts.
The Warmeston Group’s main business is the production and sale of biomass fuels for domestic and industrial use. The company uses residues from the forestry and wood industry to produce wood pellets. By creating stable demand for low-value wood, biomass fuel production improves the international competitiveness of the local forestry and wood industry and replaces the use of fossil fuels in end markets. After the acquisition, the Warmeston group companies employ almost 300 people and the annual production capacity of the group’s factories is 650,000 tonnes.
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2023-12-29 11:45:00
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