Vida AB, a 77 percent-owned subsidiary of Canfor Corporation, adds 230 million board feet of annual production capacity and expands into Central Sweden by agreeing to purchase AB Karl Hedin Sågverk from Mattsbo Såg AB and certain minority shareholders for $164 million (1.15 billion SEK), including $39 million in working capital, according to Canfor Corporation .
AB Karl Hedin Sågverk operates three sawmills in Central Sweden, providing access to exceptionally high-quality timber that complements Vida’s high-value lumber and engineered wood product offerings.
The acquisition raises Vida’s annual production capacity to approximately 2.1 billion board feet .
Vida targets annual cost synergies of $15 million within three years through alignment of marketing programs and optimization of log procurement and operational practices .
The transaction closes in several months, subject to customary closing conditions and regulatory approvals, and is financed primarily with cash on hand and new equity from minority Vida AB shareholders.
