Canadian forest products company Canfor Corporation is aiming to acquire 70 percent in Swedish sawmill company VIDA Group for 4 billion Swedish Krona (about $444 million) on a cash and debt-free basis.
With the acquisition, Canfor will transform its growth and further diversify and secure its fibre supply to meet the growing demand of its customers for high-quality wood products. The current owners of VIDA will retain a 30 percent stake and continue to manage the day-to-day business.
Canfor will finance this transaction with cash and liquidity on hand but will complete an extension and expansion of its existing operating and term loan facilities.
The transaction is expected to close in the first quarter of 2019 and is subject to due diligence, completion of certain transaction documents and other customary closing conditions, including any required regulatory approvals.