Canfor goes global
Canfor, the Canadian lumber production titan, has entered into an agreement to purchase 70% of the VIDA Group of Sweden.
VIDA is Sweden’s largest privately-owned sawmill company, operating 9 mills in southern Sweden with an annual production capacity of 1.1 billion board feet.
The deal is worth 580 million Canadian dollars (US$440.7 million) and is expected to close in the first quarter of 2019. The current owners of VIDA will retain a 30% interest and continue to manage the day-to-day business.
“With the acquisition of VIDA, we are excited to become a truly international manufacturer and provider of wood product solutions for our global customers,” said Don Kayne, president and CEO of Canfor. “This transformational growth will allow Canfor to further diversify and secure a worldwide fiber supply to meet the growing demand of our customers for high-quality wood products.”
All of VIDA’s sawmills produce spruce and pine products, and are strategically located in high quality and sustainable fiber regions of Sweden, Canfor said.
VIDA also operates 9 additional facilities that include premium packaging, modular housing, industrial products, and energy.
“VIDA, a well-known brand in its current markets, is aligned with our corporate strategy of producing high-value products, providing an exceptional customer service experience and maintaining a low cost structure,” added Kayne said. “We are excited that Santhe Dahl, Group CEO and Måns Johansson, Deputy CEO, of VIDA will continue to lead the company operations in Sweden.”
Canfor, based in Vancouver, British Columbia, also recently acquired Elliott Sawmilling Company Inc. Taking into account the full impact of VIDA and Elliott, Canfor’s annual production capacity will be approximately 7.2 billion board feet, with a highly diversified operating base in western Canada, the United States and Europe.
Last month Canfor reported third-quarter sales of $1.32 billion, compared to $1.14 billion in the same quarter last year. The company also posted a net income of $125.3 billion for the quarter, up from $66.2 billion in the third quarter of 2017.
VIDA is Sweden’s largest privately-owned sawmill company, operating 9 mills in southern Sweden with an annual production capacity of 1.1 billion board feet.
The deal is worth 580 million Canadian dollars (US$440.7 million) and is expected to close in the first quarter of 2019. The current owners of VIDA will retain a 30% interest and continue to manage the day-to-day business.
“With the acquisition of VIDA, we are excited to become a truly international manufacturer and provider of wood product solutions for our global customers,” said Don Kayne, president and CEO of Canfor. “This transformational growth will allow Canfor to further diversify and secure a worldwide fiber supply to meet the growing demand of our customers for high-quality wood products.”
VIDA also operates 9 additional facilities that include premium packaging, modular housing, industrial products, and energy.
“VIDA, a well-known brand in its current markets, is aligned with our corporate strategy of producing high-value products, providing an exceptional customer service experience and maintaining a low cost structure,” added Kayne said. “We are excited that Santhe Dahl, Group CEO and Måns Johansson, Deputy CEO, of VIDA will continue to lead the company operations in Sweden.”
Canfor, based in Vancouver, British Columbia, also recently acquired Elliott Sawmilling Company Inc. Taking into account the full impact of VIDA and Elliott, Canfor’s annual production capacity will be approximately 7.2 billion board feet, with a highly diversified operating base in western Canada, the United States and Europe.
Last month Canfor reported third-quarter sales of $1.32 billion, compared to $1.14 billion in the same quarter last year. The company also posted a net income of $125.3 billion for the quarter, up from $66.2 billion in the third quarter of 2017.