Canfor Corporation has announced that its majority-owned Swedish subsidiary, Vida AB, has signed an agreement to acquire AB Karl Hedin Sågverk.
The $164 million CAD (SEK 1.15 billion) deal includes three sawmills in Central Sweden and approximately $39 million in working capital.
The acquisition will increase Vida’s annual production by roughly 230 million board feet, bringing its total capacity to 2.1 billion board feet. The move enhances Canfor’s footprint in Europe and provides access to some of Sweden’s highest-quality timber.
“This strategic acquisition will enhance Vida’s strong operating platform and provide further diversification into Central Sweden,” said Susan Yurkovich, President and CEO of Canfor. “These operations have access to exceptionally high-quality timber and are well positioned to complement Vida’s high-value product offering.”
Canfor expects to realize annual synergies of approximately $15 million within three years, primarily through improved marketing alignment, log procurement, and operational integration.
The transaction will be financed through a combination of cash on hand and new equity from Vida AB’s minority shareholders. It is expected to close in the coming months, subject to regulatory approvals and standard closing conditions.
Canfor is a global leader in manufacturing low-carbon, high-value forest products including lumber, engineered wood, pulp and paper, wood pellets, and renewable energy. Headquartered in Vancouver, British Columbia, the company operates over 50 facilities in Canada, the U.S., and Europe. It holds a 77% stake in Vida AB—Sweden’s largest privately owned sawmill company—and a 54.8% interest in Canfor Pulp Products Inc.
