Warmeston OÜ acquires Brocēni cogeneration plant and pellet factory in Latvia from Enefit Green

Estonian wood pellet producer Warmeston OÜ has signed an agreement to acquire Brocēni cogeneration plant and pellet factory in Latvia from Enefit Green.

As part of the transaction, Warmeston OÜ will acquire a 3.98 MWe/15.9 MWt biomass cogeneration plant and a production facility that produces approximately 155 tonnes of wood pellets per year. These two plants employ 39 people. The electricity produced is sold in the Latvian market, and the heat is used for the pellet plant. The wood pellets are sold to energy companies, wholesalers, and other consumers.

The value of the transaction on a cash- and debt-free basis is 32 million euros.

Warmeston is an industrial pellet producer in the Baltics and one of the leaders for adopting the latest sustainability and quality requirements. Warmeston already owns four pellet plants in Estonia.

COBALT advised Warmeston throughout the entire transaction, which included legal due diligence, negotiations and drafting transaction documents. The team included Partners Aivar Taro and Marina Kotkas, Specialist Counsels Madis Reppo and Mart Blöndal and Senior Associate Christine Mägi from the Estonian office and Partners Gatis Flinters and Sandija Novicka, Senior Associates Diāna Zepa and Mārtiņš Tarlaps from the Latvian office.

Enefit Green announcement.