Progroup AG corporate-bond financed acquisition of Propower GmbH from EnBW
Progroup AG, headquartered in Landau, Germany, has acquired the combined heat and power plant located in Eisenhüttenstadt, Germany, from German utility company EnBW Energie Baden-Württemberg AG.
The combined heat and power plant supplies steam to Progroup’s nearby paper machine. The parties signed a sale and purchase agreement on December 2, 2015. The acquisition is effective as of December 31, 2015.
FALK & Co was the tax advisor of Progroup AG and the transaction was led by tax partners Dr Martin Eberhard and Dr Stefan Tichy. The company was involved in the tax due diligence and the tax structure work.
Progroup is a leading manufacturer of corrugated board in Europe. By acquiring the combined heat and power plant, Progroup hopes to ensure a cheaper and more efficient supply of energy to its nearby paper machine, in particular by effects of integration. The paper machine at the production site in Eisenhüttenstadt is one of the largest and most advanced of its kind in Europe with an annual production capacity of 650,000 tons.
In 2009, EnBW Energy Solutions GmbH, a subsidiary of EnBW, constructed the combined heat and power plant and, since then, has operated it on behalf of Progroup under a contracting arrangement.