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Bergs Timber selling four sawmills in Sweden to Vida

25.06.2020 − 

On 17 June, Bergs Timber came to an agreement with Vida on the sale of the Swedish sawmills Vimmerby, Mörlunda, and Orrefors as well as the assets of the only recently closed Gransjö works. The purchase price for the four works with a combined annual sawnwood output of approximately 510,000 m³ is 400m SEK (303m SEK in fixed assets) plus an estimated 150m SEK in working capital at the time of the sale closure striven for before the end of the third quarter. According to Bergs Timber, the sawmills generate annual sales revenue of 1.1bn SEK. The EBITDA margin has been between 3 % and 11 % in the last five years. The sale remains subject to approval from the competition authorities and customary closing conditions.

After the acquisition of 70 % of the shares in Vida concluded in February 2019, the latest agreement perpetuates the policy of expansion in the European sawmilling industry pursued by Canfor. For Bergs Timber, on the other hand, the sale marks its complete withdrawal from the Swedish sawmilling industry.

Peter Nilsson, president and CEO of Bergs, said the reason for the sale is Bergs Timber’s strategy of concentrating value-added products in future. Following the sales of the sawmills, Bergs will continue the activities of the “Bitus” division with the impregnating works in Nybro, the pellet activities of Fågelfors Hyvleri taken over at the end of June 2019, and the four production and trading facilities in Estonia, Latvia, and the UK taken over from Norvik Timber Industry (NTI) in May 2018. Two sawmills with a combined annual output of roughly 350,000 m³ remain in Bergs Timber’s hands in Latvia and Estonia, however.

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