ProPellet Partners with CapMan Infra for Growth and Sustainability

Deal News | Nov 15, 2024 | Capman Growth

CapMan Infra, through its CapMan Nordic Infrastructure II fund, has acquired a majority stake in ProPellet, Finland’s leading bioenergy producer. ProPellet specializes in providing heat-as-a-service (HaaS) solutions and operates two pellet fuel production facilities. This investment aims to support ProPellet's expansion into new energy technologies and customer groups. CapMan's acquisition marks its strategic push towards sustainable energy solutions, making it conditional upon approval by competition authorities, with completion expected by the end of 2024. CapMan, known for its active ownership, aims to leverage its operational expertise to foster ProPellet's growth amid the green transition in the heating sector. ProPellet's management remains as minority stakeholders, reinforcing the collaborative investment approach. The deal aligns with CapMan's long-term sustainability goals as part of its Article 8 fund initiatives.

Sectors

  • Renewable Energy
  • Infrastructure Investment

Geography

  • Finland – ProPellet is a Finnish company, and the investment by CapMan Infra is also directed towards projects in Finland.
  • Nordic Region – CapMan operates as a Nordic private equity firm with a broad presence across the region, including Finland.

Industry

  • Renewable Energy – ProPellet operates in the renewable energy sector, providing bioenergy solutions through pellet production and heat-as-a-service.
  • Infrastructure Investment – CapMan Infra's investment focuses on infrastructure development, particularly in bioenergy sector enhancements.

Financials

  • N/A – The financial terms of the transaction were not disclosed. However, CapMan manages €6 billion in assets.

Participants

NameRoleTypeDescription
CapMan InfraBidding CompanyCompanyCapMan Infra is part of CapMan, a Nordic private equity firm investing in infrastructure and bioenergy.
ProPelletTarget CompanyCompanyProPellet is a Finnish bioenergy producer and provider of heat-as-a-service solutions.
Pekko HaaksluotoPartnerPersonPartner at CapMan Infra, involved in the investment in ProPellet.
Timo PeltokorpiCOOPersonChief Operating Officer at ProPellet, commenting on the partnership with CapMan Infra.