Södra has entered into an agreement to sell its forest holdings in the Baltics to Ingka Investments, the investment arm of the Ingka Group. The transaction is subject to competition review and approval by local authorities before it can be finalised and the handover completed. This divestment marks a strategic step for Södra as it continues to focus on maximising the value of every tree from its members’ forests. The move aligns with Södra’s long-term mission to refine and renew the value of its forest estate.
In order to do what is best for the forest estate and Södra’s long-term competitiveness, Södra decided earlier this year to divest its forest holdings in the Baltics. Since then, the process of finding the right buyer has been ongoing, a task that has now reached an important milestone when Södra and Ingka Investments have reached an agreement. The deal covers the entire holding Södra currently owns in Latvia and Estonia and amounts to EUR 720 million, equivalent to approximately SEK 8 billion.
As a forest owners’ association with more than 50,000 members in southern Sweden, their mission is about their members’ forests, not about owning forests ourselves. The holding in the Baltics has been a good financial investment for Södra and the deal means that we can focus even more on making more of every tree and our long-term competitiveness. It strengthens the forest farm’s profitability in a responsible way. We now look forward to completing this together with Ingka Investments, says Lotta Lyrå, President and CEO of Södra.
“Once the deal is complete, we will continue the responsible forestry that Södra has established in these well-managed forests. Our goal is to manage the forests long-term, preserving and improving their health, while providing this renewable resource for furniture and other uses,” says Peter van der Poel, CEO of Ingka Investments.
Before the purchase is completed, competition review in both countries and approval in Latvia regarding foreign direct investments are pending. The impact on Södra’s results will be reported in the quarter in which regulatory approval has been given and the transaction is thus completed. When the process is complete, Södra’s presence in the Baltics will consist of two companies for wood imports. One in Latvia and one in Estonia.
Read more news on: forestry, forest products, wood products, furniture, woodworking
Get more updates on American woodworking industry through: www.woodandpanel.us
