Austria's HS Timber Group has signed an agreement to acquire 100% of the shares in the Latvian wood processing company Vika Wood SIA from its Swedish owner Bergs Timber AB. The transaction still has to be approved by the competition authority, and it is expected to close in the first quarter of 2025.
Key points of the transaction:
Acquisition of a leading sawmill in Latvia
Strengthening of HS Timber Group's sustainable operations portfolio
The Vika brand is retained
The sawmill, whose high-quality products are known internationally under the Vika brand, is located near Talsi in western Latvia. Both parties have agreed to treat the terms of the transaction as confidential. The brand, the company's management and Vika Wood's business operations will remain unchanged. Vika Wood chief executive Haralds Kronbergs, together with the experienced management team, will continue to develop the company in the future as well. Following the signing of the agreement, HS Timber Group has announced that work on investment projects and development plans will continue.
Vika Wood is one of the largest sawmills in the Baltic region and a significant employer in the region, with a production capacity of up to 300,000 m³ of dried sawn timber per year and around 140 employees. The sawmill was founded in 1995 and processes locally sourced coniferous roundwood from sustainably managed forests; the company is a valuable addition to HS Timber Group's product and market portfolio.
“This transaction is fully in line with our strategy of strengthening our operations and developing sustainably. By gaining access to high-quality raw materials and entering the attractive Baltic market, we can serve our customers even better,” says Jürgen Bergner, chief executive of HS Timber Group.
“The sale of Vika Wood is in line with Bergs Timber's strategy of focusing on more consumer-oriented products. Vika Wood has a good reputation, and we thank chief executive Haralds Kronbergs and his team for these successful years of operation. HS Timber Group, the new owner, has a clear vision to continue investing in and developing the Vika Wood organisation and brand,” explains Bergs Timber chief executive Peter Nilsson.
Vika Wood specialises in producing high-quality coniferous sawn timber, which is sold in more than 30 countries. The sawmill also holds an important place in the regional value chain, supplying production by-products to pellet manufacturers and the pulp industry.
HS Timber Group is one of the largest wood processing companies in Europe, with its head office in Austria; the company is fully committed to caring for Vika Wood's employees and its long-term success.