Gren signs agreement to acquire Estonia’s third largest district heating network operator
Gren has signed an agreement to acquire the heating network operator VKG Soojus AS, the next step in the implementation of Gren’s strategy in the Baltics. The entry into force of the transaction is subject to the approval of the Competition Authority.
Ellex in Estonia advised Gren on the transaction. The team included Ellex in Estonia Partner Martin Käerdi, Counsels Triin Frosch and Jaanus Ikla, Senior Associates Kaisa Laidvee, Karin Tartu, Merlin Liis-Toomela, Alla Kuznetsova and Lawyer Alan Paas.
Margo Külaots, Chairman of the Board of Gren Estonia and Gren Tartu, said: “We have been developing district heating services for our customers in Pärnu and Tartu for over 20 years and have provided reliable, affordable and comfortable house heating. We have converted district heating systems in both cities to local biofuels, built efficient combined heat and power plants, modernised district heating networks and expanded them by connecting new clients. We were the first in the Baltics to launch a new service – district cooling. We are confident that our long experience in district heating will bring positive developments and new services to the communities, residents and businesses of Kohtla-Järve and Jõhvi.”
Ilkka Niiranen, CEO of Gren Group continued, “The acquisition of the third largest district heating network in Estonia is a further step in the implementation of our growth strategy. It is an important step for our business in Estonia. Gren has proven itself as a reliable partner for communities, industries and customers. Together, we aim to achieve sustainable success. We are convinced that the long-term cooperation between Viru Keemia Group and Gren will bring benefits and adds value to the entire region”.
Ahti Asmann, Chairman of the Board of Viru Keemia Group, added: “VKG is a chemical industry company whose business focus and competencies are primarily directed towards the development of industrial production in Ida-Viru County. During the strategic review carried out at the beginning of the year, we found that the supply of thermal energy to end consumers would be more promising in the hands of a company specialising in this area. We are pleased that we have found such a strong partner like Gren for our regulated district heating business. We will work together towards the entry into force of the deal in the coming months and in all cases we will continue to provide local communities with efficient and environmentally friendly heat.”