Partners Group Buys District Heating Platform in Northern Europe from Fortum
Posted on 03/13/2021
Partners Group, on behalf of its clients, agreed to acquire one of the largest district heating platforms in the Baltics, from Finnish energy company Fortum Corporation. Fortum, which operates across Estonia, Latvia and Lithuania, has 74 generation assets, which generate heat capacity of 881 MW and power capacity of 130 MW across 387 kilometers of district heating networks. The District Heating Platform’s fuel is largely derived from renewable or recycled sources, mainly biomass.
The total consideration on a debt- and cash-free basis is 800 million euros. Fortum expects to record a tax exempt capital gain of approximately 240 million euros in the City Solutions segment’s second-quarter 2021 results. The transaction is subject to customary closing conditions and is expected to be completed in the second quarter of 2021.