Partners Group [SWX:PGHN] is preparing for a sale process of its portfolio company Gren, a Netherlands-registered energy group with assets in the Baltics and the UK, four sources with knowledge of the situation said.

Morgan Stanley is advising on the sellside, three of them said, adding that this is a potential deal for 2025. The company is a sizable asset that has reached maturity under the current holding, said one of the sources.

Gren operates 82 production sites in Estonia, Latvia, Lithuania and the UK, with a total production capacity of 1,389 MW; heat sales of 2.5 TWh and electricity sales of 0.7 TWh, according to its website. Its assets include biomass heat and power, district cooling and waste-to-energy plants in the Baltics; and a network of waste and biomass assets in the UK, also according to the website.

Partners Group acquired the Baltic district heating assets from the Finnish energy group Fortum [HEL:FORTUM] for a total consideration on a debt- and cash-free basis of EUR 800m in March 2021, as reported.

Following several acquisitions in the Baltics, Gren entered the UK market with the acquisition of 11 waste and biomass-fueled assets for an undisclosed consideration in May 2023, according to Gren’s announcement and this news service’s deals database.

Earlier this year, Gren announced acquisitions of ESRO, an Estonian district heating company, in July; Rigas Energija, an operator of a biomass combined heat and power plant in Latvia, in January; and a 50% stake acquisition in South Clyde Energy Centre, an Energy-from-Waste Facility in Glasgow, in June, according to previous reports and a company press release.

A Bloomberg report in March 2024 cited people with knowledge as saying that Partners Group was considering a sale of certain infrastructure assets in Europe worth USD 5bn (EUR 4.7bn), potentially including Gren. No formal process to exit Gren, which could fetch a valuation of EUR 1.5bn, had been launched at the time, according to the same newswire report.

Partners Group and Morgan Stanley declined to comment. Gren did not return a request for comment.