The corporate logo for Canfor Corp. is shown in this undated handout photo. THE CANADIAN PRESS/Canfor Corp.

Canfor to buy 70 per cent stake in Swedish Vida Group for $580 million

The privately held company has nine sawmills in southern Sweden with an annual production capacity of 1.1 billion board feet.

Canfor Corp. has signed a deal to buy a 70 per cent stake in Swedish sawmill company Vida Group for about $580 million.

Under the agreement, the current owners of Vida will retain a 30 per cent interest and continue to manage the day-to-day business.

The privately held company has nine sawmills in southern Sweden with an annual production capacity of 1.1 billion board feet.

Vida also has nine value-added facilities that include premium packaging, modular housing, industrial products and energy.

Canfor says it expects to be able to finance the acquisition with cash and liquidity on hand, but will complete an extension and expansion of its existing operating and term loan facilities.

The deal is expected to close in the first quarter of next year.

Related: President of Canfor departs amid leadership changes

Related: United Steelworkers in B.C. Interior return strike vote

Companies in this story: (TSX:CFP)

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Paintearth Community Adult Learning boasts another successful year

The 2019/2020 school year looks to bring back many popular programs and some new ones

Red Deer man arrested in connection with Leduc armed robbery

Leduc RCMP asking for public assistance after armed robbery – UPDATE

Community tradition

Castor Community Hall played host to the annual Bridge Tournament on May 4th

Alberta RCMP shares tips for motorcycle safety month

Showing off does not pay off – but driving defensively does

Castor looking into animal control bylaws and improving training for staff

The training is being undertaken by the Town employees to minimize public, staff, and animal risk

New airline regulations bring compensation for tarmac delays, over-bookings

Some of the new regulations will roll out in July, while others are expected for December.

Scheer says it would take Conservatives five years to balance budget

Scheeraccused the Liberal government of spending $79.5 billion of previously unbudgeted funds

Theresa May to quit as party leader June 7, sparking race for new PM

The new Conservative leader will become prime minister without the need for a general election

CMHC defends mortgage stress test changes amid calls for loosening rules

Uninsured borrowers must now show they could service their mortgage if rates rose two per cent

School bus crash in Edmonton sends 12 to hospital, 2 with broken bones

Alberta Health Services said there were no life-threatening injuries

Crews fight fire with fire to keep blaze from northern Alberta town

The wildfire now covers some 920 square kilometres

Supreme Court of Canada won’t hear Alberta murder appeals

Sheena Cuthill and her husband Timothy Rempel were found guilty three years ago of killing Ryan Lane

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

Canada stripping citizenship from Chinese man over alleged marriage fraud

The move comes amid severely strained relations between Ottawa and Beijing

Most Read