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MCF acted as financial adviser to Junnikkala on the sale of its heat plant operations at the Kalajoki sawmill to Loimua

Junnikkala, a leading Finnish family-owned producer of forest products, has sold its heat plant operations at the Kalajoki sawmill to Loimua. As a result of the transaction, Junnikkala and Loimua will jointly develop the heat plant operations, which provide heat to the sawmill and the municipal district heating network in Kalajoki. The transaction enables Junnikkala to focus on its strategy and core business going forward.

In this transaction, MCF advised Junnikkala in organising a structured process and facilitated the deal through its broad experience in the sector.

The Deal

Loimua is a leading Finnish provider of energy solutions for commercial, residential, and the public sector. The company provides district heating and other adjacent services to approx. 85,000 end customers across Finland. In 2022, Loimua generated revenue of EUR 92m and employed 90 people. Loimua is owned by Abrdn, DIF Capital Partners and LPPI Infrastructure Investments.

Loimua was selected as the preferred long-term partner for Junnikkala in Kalajoki, building on the companies’ existing cooperation at Junnikkala’s Oulainen sawmill.

The Target

The heat plant operations at Junnikkala’s sawmill in Kalajoki comprise three solid fuel boiler plants and an auxiliary fuel oil boiler. The heat plants produce heat for the sawmill’s drying rooms and the local district heating network in Kalajoki. The combined capacity of the heat plants is approx. 24 MW.

About Junnikkala Oy

Junnikkala is a leading Finnish producer of forest products. The company procures, processes, and manufactures wood products, which are sold to over 40 countries globally. Junnikkala was established in 1960, and today it operates a total of three sawmills in Finland at Kalajoki, Oulainen and Oulu with a combined production capacity of over 700,000m3. Junnikkala generates revenue of over EUR 140m with approx. 200 employees.

MCF deal team

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