Canfor Announces Acquisition of Key Stake in Sweden's Largest Sawmill Company

SEATTLE (Scrap Monster): Canfor Corporation reached an agreement with Swedish VIDA Group to purchase 70% interest in that company. The estimated purchase price is CAD$580 million on a cash and debt-free basis. VIDA Group will continue to hold the remaining 30% interest and will run the day-to-day business. The acquisition, which follows that of Estill, S.C.-based Elliott Sawmilling Company last week, is considered to be part of its diversification strategy.

Don Kayne, President and Chief Executive Officer of Canfor stated that the acquisition of VIDA is expected to transform the company into a leading international manufacturer and provider of wood product solutions. It will boost worldwide fiber supply to meet growing customer demands, he said. He welcomed VIDA’s highly professional management team and extremely talented employees to Canfor. The company’s Swedish operations will be led by Santhe Dahl, Group CEO and Måns Johansson, Deputy CEO, of VIDA, Kayne added.

The purchase transaction will be entirely financed with cash and liquidity on hand. Canfor plans further expansion of acquired operations. The transaction is expected to close during Q1 next year, subject to due diligence, completion of certain transaction documents and other customary closing conditions.

VIDA-Sweden’s largest privately owned sawmill company operates nine sawmills with combined production capacity of 1.1 billion board feet per annum and an equal number of value-added facilities