Fortum sells turbine, generator services to Elcoline Group

The Finnish majority state-owned energy company Fortum on Friday signed an agreement to sell its turbine and generator services to industrial technical services provider Elcoline Group Oy, said an official press release.

The divestment is part of Fortum’s ongoing strategic review of its Circular Solutions businesses. The Circular Solutions businesses are not in the core of Fortum’s strategy. Fortum’s strategic focus is on delivering clean energy and driving decarbonisation of industries in the Nordics.

The transaction will not have any material financial impact on Fortum Group’s result.

The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2024.

The turbine and generator services businesses are located in Finland, Sweden and Germany and currently employ approximately 170 employees.

After the divestment, Fortum continues the strategic review of its remaining Circular Solutions’ businesses: battery recycling business and UK-based waste-to-energy business.

The net assets of these remaining businesses total about EUR 70 million and they have about 200 employees.

For the last twelve months (including Q3 2024), the comparable EBITDA was approximately EUR -20 million.

“We are very pleased that our employees will be part of a strong and growing player whose core business is maintenance and repair services. Our employees will have a new home where their skills and work will be at the core of what we do, and together we can develop more specialised services for our customers. Elcoline’s ownership base includes well-known Finnish investors Evli, Elo, Tesi and Arvo Sijoitusosuuskunta, as well as the company’s founders and personnel, providing a solid basis for joint growth,” said Lars-Hugo Andersson, Vice President, Fortum TGS.

“This acquisition will accelerate Elcoline’s ambitious growth strategy and is an important step towards our EUR 250 million revenue target. In the coming year, our revenue is expected to reach almost EUR 150 million. The transaction will internationalise and expand our operations in important sectors such as energy and other industrial power producers. By joining forces with TGS, we will be able to offer our customers more specialised expertise and strengthen our position as a Nordic provider of technical services to industry,” said Elina Engman, the Chief Executive Officer of Elcoline Group.