Canfor Subsidiary Successfully Completed Acquisition of Swedish Sawmills

SEATTLE (Scrap Monster): Vida Group-Canfor Corporation’s Swedish subsidiary announced that it has completed acquisition of three Swedish sawmills in the country from Bergs Timber. Earlier in mid-June this year, Canfor’s 70%-owned subsidiary had entered into an agreement to purchase the mills in the Scandinavian country for a sum of $43 million plus working capital. The completion of the deal was announced via a brief notice issued by the company Tuesday.

The transaction acquired saw mills in Orrefors, Vimmerby and Morlunda. In addition, it also acquired the assets of discontinued operations in Gransjo. The acquisition deal has added approximately 215 million board feet to Vida’s annual capacity. Having completed the transaction, the company now plans to make significant investments at the mills, which could boost the combined annual production capacity to around 300 million board feet, the company press release noted.

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With this, Sweden now accounts for Canfor’s 22% total production capacity. The major contributors are the B.C. region and southern U.S. regions, which accounts for 43% and 31% of the total capacity respectively. Alberta constitutes 4% of Canfor’s annual production.