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Sorainen and Ellex Advise on Fortum's Sale of Baltics District Heating Business to Partners Group

Sorainen and Ellex Advise on Fortum's Sale of Baltics District Heating Business to Partners Group

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Sorainen has advised the Fortum energy company on the sale of its district heating business in the Baltics to the Partners Group, a global private markets firm, acting on behalf of its clients. Ellex advised the Partners Group on the transaction.

Fortum provides district heating in five cities in the Baltics – Tartu and Parnu in Estonia, Daugavpils and Jelgava in Latvia, and Klaipeda in Lithuania. In those cities Fortum also owns four combined heating and power plants as well as a 49% share of the Kaunas combined heating and power plant, in Lithuania, through a joint venture.

According to Sorainen, the transaction, subject to customary closing conditions, is expected to be completed in the second quarter of 2021. According to the firm, “with a total consideration of EUR 800 million on a debt- and cash-free basis, this will most likely be the biggest M&A transaction in the Baltics in 2021. The transaction is a continuation of Fortum’s strategy execution, whereby Fortum continuously reviews its businesses to optimize its portfolio for value creation.”

Sorainen’s team was led by Counsel Isabella Barbara Tisenhusen and Partner Toomas Prangli and also included, in Estonia, Senior Associates Britta Retel, Mirjam Vichmann, Kaspar Endrikson, Piibe Lehtsaar, and Lise-Lotte Laane, Associate Andra Grunberg, and Legal Assistant Nils-Gregory Aer, in Latvia, Partner Eva Berlaus and Senior Associates Renate Purvinska, Viktorija Smirnova-Cerkasa, and Zanda Frisfelde, and in Lithuania, Partner Sergej Butov, Senior Associates Jonas Kiauleikis, Aurimas Banys, Julija Kirkiliene, Monika Malisauskaite-Vaupsiene, and Aurelija Daubaraite, and Associates Lukas Vaisvila and Sidas Sokolovas.

Ellex's team was led by Vilnius-based Partner Paulius Gruodis and included, in Estonia, Partner Gerli Kivisoo, Counsel Triin Frosch, Senior Associates Anneli Krunks and Hanna Pahk, and 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, and Associates Eduards Dzintars, Ints Skaldis, Kristers Losans and Marats Golovkins; and in Lithuania, Partners Paulius Gruodis, Giedrius Stasevicius, and Karolis Kacerauskas, Expert Ema Buteniene, Senior Associates Mantas Juska, Edvinas Beikauskas, Gintare Skroliene, and Nerijus Patlabys, and Associate Laura Paulaite.

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