The Canadian pulp and paper group Canfor Corporation announced that its 77%-owned subsidiary, Vida AB, has completed the acquisition of AB Karl Hedin Sågverk from Mattsbo Såg AB and minority shareholders for $164 million, including $39 million in working capital. The transaction raises 230 million board feet of annual production capacity through seven facilities in Sweden and Latvia.

The acquisition augments Vida's total annual production to approximately 2.1 billion board feet. The facilities include seven sawmills and one pressure treatment plant, with 135 employees across the operations. The assets are strategically located in the Baltic Sea region, providing logistical access to key European markets.

Canfor expects annual cost synergies of $15 million within three years through alignment of marketing programs, optimization of log procurement, and streamlined operational practices.

The deal was financed with a combination of cash on hand and new equity contributions from Vida AB's minority shareholders. Integration of the facilities will be led by the VIDA team to ensure operational alignment across regions.

Canfor expects annual cost synergies of $15 million within three years through alignment of marketing programs, optimization of log procurement, and streamlined operational practices.

The deal was financed with a combination of cash on hand and new equity contributions from Vida AB’s minority shareholders. Integration of the facilities will be led by the VIDA team to ensure operational alignment across regions.

Source: Canfor Corporation