Canfor’s Subsidiary Vida AB Expands Into Central Sweden With Acquisition of Three Sawmills

On Tuesday, Canfor announced that its 77%-owned subsidiary, Vida AB, has agreed to acquire AB Karl Hedin Sågverk from Mattsbo Såg AB and certain minority shareholders for $164 million (SEK 1.15 billion), including working capital of approximately $39 million.

AB Karl Hedin Sågverk operates three sawmills in Central Sweden, which will add roughly 230 million board feet to Vida’s annual production capacity. The acquisition will bring Vida’s total annual capacity to approximately 2.1 billion board feet.

Canfor expects to realize annual synergies of about $15 million within three years, primarily through streamlined marketing programs, log procurement, and operational efficiencies.

The transaction will be financed largely through cash on hand and new equity from minority Vida AB shareholders. Closing is expected in the coming months, subject to customary conditions and regulatory approvals.

In a statement, Canfor President and Chief Executive Officer Susan Yurkovich said:

“This strategic acquisition will enhance Vida’s strong operating platform and provide further diversification into Central Sweden. These operations have access to exceptionally high-quality timber and are well positioned to complement Vida’s high-value product offering.”