Holmen signed an agreement to acquire Martinsons, one of Sweden's leading players in sawn and processed wood products. The purchase price is SEK 1.0 billion ($111 million) for 100% of the shares. The acquisition will almost double Holmen's sales of wood products to over SEK 3 billion, while also advancing positions in wood construction and providing Holmen with the capacity to process the majority of the raw material from its own forests in its own industry.
Martinsons consists of two well-invested sawmills in northern Sweden with extensive processing of wood products for Scandinavian wood construction, as well as a project operation for construction of complete frames made of cross-laminated timber (CLT) and glulam beams for purposes such as offices, sports centres and apartment buildings. The company has 470 employees, most of whom work in processing.
After completion of current investments, Bygdsiljum, the larger sawmill, will be able to produce 500 000 m3 of wood products annually, while the annual production at Kroksjön is over 100 000 m3. Bygdsiljum also manufactures CLT and glulam beams, while Kroksjön processes wood products through trimming, planing, painting, treatment and finger jointing. Annual timber consumption is 1 million m3, which corresponds with Holmen's annual timber harvest in northern Sweden.
The acquisition will be funded from existing credit facilities and is expected to positively contribute to earnings per share from the time of takeover, which is expected to occur during the 4Q.
The deal is subject to approval from the relevant competition authority, which is expected in the fall.