CapMan Infra Invests in Finland’s Leading Bioenergy and Heat-as-a-Service Provider ProPellet

CapMan Infra Invests in Finland’s Leading Bioenergy and Heat-as-a-Service Provider ProPellet

(IN BRIEF) CapMan Infra, through its Nordic Infrastructure II fund, has acquired a majority stake in ProPellet Oy, Finland’s leading bioenergy producer and heat-as-a-service (HaaS) operator. ProPellet, which operates over 120 heating sites and two pellet production facilities using forestry by-products, has grown significantly as demand shifts from oil-based heating to biofuels. The investment will support ProPellet’s expansion into new energy technologies and customer segments while advancing its heating service business. Aligned with CapMan’s sustainability goals, the transaction is expected to close by the end of 2024, further accelerating Finland’s green energy transition.

(PRESS RELEASE) HELSINKI, 16-Nov-2024 — /EuropaWire/ — CapMan Infra, through its Nordic Infrastructure II fund, has announced its acquisition of a majority stake in ProPellet Oy, Finland’s foremost bioenergy producer and heat-as-a-service (HaaS) operator. The strategic investment is aimed at bolstering ProPellet’s growth, enabling further development of its heating service business, and supporting its expansion into innovative energy technologies and new customer segments. The company’s key personnel will retain minority ownership, ensuring continuity in operations and expertise.

ProPellet: A Leader in Bioenergy

Established in 2006, ProPellet is a trailblazer in pellet-based bioenergy production and HaaS solutions in Finland. With a team of 25 employees, the company operates over 120 heating sites nationwide, offering property-specific heating plants as a service. Additionally, ProPellet manages two pellet production facilities in Ylivieska and Tervola, utilizing forestry and sawmill industry by-products as raw materials. The company has experienced substantial growth in recent years, driven by the shift from oil-based heating to biofuel alternatives.

Accelerating Growth and the Green Transition

CapMan Infra’s investment aims to propel ProPellet to new heights by providing resources for scaling its HaaS operations and exploring advanced energy solutions. Commenting on the partnership, Pekko Haaksluoto, Partner at CapMan Infra, stated:
“ProPellet holds significant growth potential, and we are committed to advancing its heating service business while supporting its foray into new energy technologies. This investment aligns with our mission to accelerate the green transition across our portfolio.”

Timo Peltokorpi, COO of ProPellet, welcomed the collaboration:
“With CapMan’s resources and expertise, we are well-positioned to meet our customers’ needs more effectively and continue developing cutting-edge energy solutions. This partnership will take our heating services to the next level and strengthen our contribution to the green transition in the heating sector.”

A Sustainability-Focused Investment

This acquisition aligns with the sustainability objectives of the CapMan Nordic Infrastructure II fund, an Article 8 fund dedicated to fostering the green transition within its portfolio. ProPellet joins a diverse portfolio that includes investments in data center platforms, solar energy, and district heating and electricity networks, reflecting CapMan Infra’s commitment to sustainable growth and operational excellence.

Supporting Finland’s Energy Transition

Pending regulatory approval, the transaction is expected to close by the end of 2024. CapMan Infra’s experienced team, based in Helsinki and Stockholm, will collaborate closely with ProPellet’s management and personnel to drive innovation and expand its impact on Finland’s heating sector. By advancing bioenergy solutions and integrating greener technologies, the partnership underscores a shared commitment to fostering a sustainable energy future.

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation and €6 billion in assets under management. As one of the private equity pioneers in the Nordics we have developed hundreds of companies and assets creating significant value for over three decades. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Our service business includes procurement services. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com

Media Contact:

Pekko Haaksluoto
Partner, CapMan Infra
tel. +358 40 584 6031

SOURCE: CapMan