Friday, May 23, 2025
Stora Enso has agreed to sell about 175,000 hectares of forest land, or 12.4% of its total forest land holdings, for an enterprise value of EUR 900 million, or SEK 9.8 billion, in Sweden. In the newly established business, a partnership led by MEAG will own 44.4% of the shares, while Soya Group will own 40.6%. Munich Re, a German insurance provider, has MEAG as its asset manager. Stora Enso is going to keep 15% of the business.
Stora Enso and the divested firm will sign a 15-year wood supply agreement with the possibility of a further 15-year extension as part of the deal. This will guarantee wood availability for the Swedish business units of Stora Enso. Additionally, a forest management agreement that will allow Stora Enso to supply forest-related services will benefit the new firm. Based on full-year 2024 figures, the divestiture is estimated to result in an annual drop of about EUR 25 million in the Group’s adjusted EBITDA, of which EUR 15 million is cash-related. The EUR 900 million enterprise value is consistent with the forest assets’ accounting fair value. Stora Enso’s net debt is anticipated to drop by EUR 790 million as a result of the sale profits.
“We remain committed to building a stronger Stora Enso. This transaction further strengthens our financial stability. By strategically monetising a portion of our forest assets while retaining full access to the wood supply, we are taking a proactive step to reduce our debt. This transaction not only enhances our financial flexibility but also allows us to capitalise on the inherent value of our forest assets. We look forward to building a strong partnership and a successful collaboration with the new owners,” Stora Enso’s President and CEO, Hans Sohlström, confirms.
The deal is anticipated to be finalised in the third quarter of 2025, pending approval by the appropriate competition authorities. In October 2024, Stora Enso made the divestment plan public.
About Stora Enso
Stora Enso is one of the biggest private forest owners in the world and the top supplier of renewable products for packaging, biomaterials, and timber building. They speed up the shift to a circular bioeconomy, which leads to better choices for society. emphasises the potential of renewable materials in a wide range of applications, with the forest serving as its base.
Along with skilled forest management, the company is committed to developing carbon-storing and bio-based solutions for advanced biomaterials, circular packaging, and low-carbon building construction. Building, retail, food & beverage, manufacturing, e-commerce, pharmaceutical, cosmetics, confections, hygiene, and textiles are some of the industries that currently use the company’s products.
Stora Enso is centered around the forest, and they hold the belief that anything that is manufactured now from fossil fuels may be made tomorrow from a tree. One of the world’s biggest private forest owners, Stora Enso, is the industry leader in renewable products for packaging, biomaterials, and wooden construction. The Group’s sales in 2024 were EUR 9 billion, and Stora Enso employed about 19,000 people. Nasdaq Stockholm AB (STE A, STE R) and Nasdaq Helsinki Oy (STEAV, STERV) both list Stora Enso’s shares. Additionally, the shares are traded on the OTCQX in the USA as both ordinary shares (SEOAY, SEOFF, and SEOJF) and ADRs.
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