In August, funds managed by affiliates of one of the world’s largest alternative investment managers, Apollo Global Management Inc., acquired an 80% stake in AS Graanul Invest. The transaction was approved by the European Competition Authority at the end of September and closed on 14th October.
“Apollo’s joining the circle of business owners allows us to grow even faster. Apollo is a strategic investor who understands very well the complexity of our business and the new opportunities provided by investments in bioenergy,” commented Raul Kirjanen, Graanul Invest CEO. “A large international investment fund among the owners gives the company even more flexible opportunities to raise the capital needed for investment.”
“For Apollo, the deal is a major step as a strategic investment in Europe’s green energy transition. Apollo’s long-term goal is to support European companies and the transition of the energy sector to renewable energy sources. Sustainably-sourced wood pellets are an excellent substitute for fossil resources, especially coal in classic cogeneration plants,” commented Brad Fierstein, who led the deal for Apollo. “We have 5 years of experience in cooperating with Graanul Invest in financing projects in Belgium and the USA. Graanul Invest has proven to be an excellent expert and is an absolute leader in the technology of the world pellet industry. ”
The Apollo transaction concerns all 12 Graanul Invest pellet plants in the Baltics and the USA. In 2020, the Graanul Invest Group was previously divided into three separate parts: the wood pellet producer Graanul Invest, whose majority stake was acquired by Apollo Funds, Graanul Assets, which includes the group’s forest companies, and Graanul Tehnoloogia (Technology), which will continue as the parent company of Graanul Biotech. The circle of owners of Technology and Assets remains the same as it was before the sale of the wood pellet industry.
Founded in 1990, Apollo Global Management is an international asset management company with American roots and assets of USD 455 billion. The group has a total of 1,700 employees and is divided between subsidiaries and branches in 15 centers around the world. Together with Graanul Invest, the company’s portfolio includes dozens of companies in the field of technology and energy. Apollo’s investment portfolio is divided into many different business areas.
Apollo is a high-growth, global alternative asset manager. We seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through our investment activity across our fully integrated platform, we serve the retirement income and financial return needs of our clients, and we offer innovative capital solutions to businesses. Our patient, creative, knowledgeable approach to investing aligns our clients, businesses we invest in, our employees and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2021, Apollo had approximately $461 billion of assets under management. To learn more, please visit www.apollo.com.
About AS Graanul Invest
Founded in 2003, Graanul is a world leader in biomass and bioenergy production and is the largest producer of wood pellets in Europe. The Company employs more than 500 professionals across its 12 modern pellets plants in the Baltics and U.S., as well as its six combined heat-and power plants in Estonia and Latvia. Graanul is fully committed to providing viable and sustainable alternative solutions to fossil fuel and carbon emissions, tracing 100 percent of the materials it uses across its supply chain to its source.