Iida Group Holdings acquired a 75% stake in Russian lumber producer RFP Group for 60 billion yen ($525 million) at the end of 2021. As Iida Group notes in its 2021 fiscal year report, the synergies from the acquisition are unclear at this point.
"We will see the situation from various points of view and make a rapid decision so as not to undermine the value of the shares held by the existing shareholders. To that end, we will try to collect the right information and analyze it as the business situation in Russia is changing from moment to moment every day", said the company.
In 2021 fiscal year, Iida's business with RFP was about 2 billion yen ($15 million). Thus, the impact of the restriction on Russian timber imports to Japan was limited. Sales in Japan represent only about 10% of RFP's total sales. Iida expects that rising global timber prices will increase the efficiency of RFP's business.