Sorainen is advising Home of Smart Energy on the sale of its Estonian and Latvian subsidiaries, 220 Energia, to the Alexela Group. 220 Energia is an electricity sales company based on Estonian private capital.
“Alexela is a seller of electricity and gas very similar to 220 Energia, and merging in a single group will provide additional value to the current customers of 220 Energia – our customers can now benefit from the offers of Alexela while it will also improve the company’s long-term capability to offer a competitive alternative to former electricity and gas monopolies related to network companies,” said Marko Allikson, member of the board of 220 Energia. “The energy market has reached a more mature consolidation phase where it is necessary to acquire new market share to facilitate continued fast growth. That has made market players look for opportunities to consolidate,” Allikson stated.
“220 Energia has proved itself as a strong performer in the energy market with an established customer base. The transaction will not bring along any changes for the customers and partners of 220 Energia – the company and the brand will be preserved, the web page and all the current contacts will also continue to work,” said Maria Helbling, manager of Alexela, in the press release.
Last year, the turnover of 220 Energia grew by 2.3 per cent, to 7.1 million euros. The company reached a profit of 60,200 euros from the loss of 100,400 euros. Alexela is a holding company based on Estonian capital, made up of companies related to a common circle of owners. The company employs over 1000 people and operates in the areas of energy, metal industry and oil shale processing.