Gren acquired the Viljandi district heating company ESRO, Prudentia acted as a sell-side advisor
October 2024. After fulfilling the standard conditions required to complete the transaction, Gren has finalized the acquisition process of ESRO, an energy company that operates in the Viljandi region in Estonia. This marks the next step in Gren's journey to execute its ambitious growth plans in Estonia.
Gren will continue to provide district heating services in Viljandi under the name Gren Viljandi AS, while electricity sales will be conducted under the name Gren Sakala OÜ.
Jaan Saar, former Chairman of the Board and shareholder of ESRO: "After more than 30 years of providing and developing district heating in the town of Viljandi and its surroundings, the decision to exit the business was not easy. Over these years, in cooperation with the Viljandi town government, we have elevated the district heating management of Viljandi to a new level. Today, nearly 90 percent of our more than 50-kilometer heating network is covered with modern pre-insulated pipes. The company's three separate heating plants are connected to a unified district heating network, managed by computer. Currently, we produce the majority of the region's heat demand with wood chips, which has earned the company an efficient district heating certificate. Our latest major investment involves installing electrostatic filters on wood chip boilers to clean the exhaust gases.
I believe we have found a worthy successor in Gren, who will continue to develop the company and offer new opportunities and solutions to the residents and businesses of Viljandi. We sincerely thank the town of Viljandi and our loyal customers, with whom it has been a pleasure to work, as well as all our dedicated employees whose contributions have been the key to the company's success."
Margo Külaots, Head of Gren in Estonia: “For over 20 years, our team in Estonia has been developing district heating services for customers in Pärnu and Tartu. For the past two years, we have managed the district heating network in the Kohtla-Järve, Jõhvi, and Ahtme areas. We believe our extensive experience will bring positive developments and new services to the residents and businesses of Viljandi. Viljandi is a beautiful and growing town, and Gren’s goal is to offer reliable, affordable, and convenient heating energy to the community. District heating is the most efficient solution for providing the necessary heat to communities the size of Viljandi. The district heating system in Viljandi has been well-maintained and responsibly managed. The foundation is strong, and we have the opportunity to further develop it by adding our resources and expertise.
Gren aims to grow not only in the district heating sector but also to be a leader in other energy fields. We have transitioned both the Tartu and Pärnu district heating systems to local biofuels, established efficient combined heat and power plants, continuously modernize district heating networks in all our operational areas, and expand them by connecting new customers. We were the first to introduce a new service – district cooling – in the Baltic region, which is now operating in both Tartu and Pärnu. We were also the first in Estonia to implement a heat storage system at the Tartu cogeneration plant to enhance energy savings,”
About the company
ESRO AS (newly named Gren Viljandi) 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.
About the buyer
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. Gren now operates in four locations across Estonia: Tartu, Pärnu, Viljandi and the Jõhvi, Kohtla-Järve, and Ahtme regions in Ida-Virumaa. Gren’s Estonian companies employ nearly 190 people in total. In 2023, Gren sold 1,049 GWh of thermal energy, 12 GWh of cooling, and 243 GWh of electricity in Estonia.
The Esro shareholders were advised by Prudentia Tallinn’s Managing Partner Illar Kaasik and Associate Director Tiina Sõber throughout the transaction process, including its preparation, buyer search, negotiations, and closing.