Energy company Gren acquires district heating company ESRO

Ellex in Estonia advised energy company Gren on the acquisition of district heating company ESRO.

Energy company Gren has signed an agreement to acquire the district heating company ESRO, marking the next step in Gren’s ambitious growth plans in Estonia. The completion of the transaction is subject to approval by the Competition Authority and by the Consumer Protection and Technical Regulatory Authority in Estonia.

ESRO AS is an energy company primarily engaged in the production, distribution, and sale of thermal energy in the town of Viljandi and Jämejala village in the Viljandi municipality.

Ilkka Niiranen, Gren’s CEO, comments: “Gren focuses on developing and providing sustainable energy solutions, mainly district heating. District heating is the most effective solution to provide essential heat for communities like Viljandi, and we are happy to grow our business in the Viljandi district heating system. The acquisition is in line with Gren’s strategy and goals.”

Gren develops green energy projects in Estonia, Finland, Sweden, Latvia, Lithuania, and the United Kingdom, ranging from environmentally friendly district heating and cooling to renewable energy-based industrial energy solutions. In Estonia, Gren operates in Tartu, Pärnu, and the Ida-Viru County areas of Jõhvi, Kohtla-Järve, and Ahtme, with a total of approximately 150 employees across three companies. In 2023, Gren sold 1,049 GWh of thermal energy, 12 GWh of cooling, and 243 GWh of electricity in Estonia. Gren’s Estonian companies are certified for compliance with the ISO 9001, ISO 14001, and ISO 45001 management system standards.

Gren was advised by Ellex Partner Martin Käerdi and Counsel Triin Frosch.