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

Castor area police complaints were up in 2018

Overall trend is showing declining crime numbers.

Let the Games begin!

Team Alberta takes home gold and silver in speed skating on day one

WATCH: Historic night in Red Deer as 2019 Canada Winter Games kicks off

Star-studded Opening Ceremony features athletes from across Canada

Athletes’ medals unveiled at the official kick-off of 2019 Canada Winter Games

Medals depict Central Alberta landscape and pay tribute to First Nations

‘Riya was a dreamer’: Mother of slain 11-year-old Ontario girl heartbroken

Her father, Roopesh Rajkumar, 41, was arrested some 130 kilometres away

Ontario man accused of killing 11-year-old daughter dies in hospital, police say

Roopesh Rajkumar had been hospitalized with what police described as a self-inflicted gunshot wound

Manitoba ‘pauses’ link with ex-B.C. premier Gordon Campbell after allegations

Campbell had been hired to review two major hydro projects

Heritage minute features Japanese-Canadian baseball team, internment

The Vancouver Asahi baseball team won various championships across the Pacific Northwest

Hee-Won Son takes home gold in 500m Female Short Track Speed Skating

Team Alberta sits in second place overall at the Canada Winter Games

Shots fired in Maskwacis home invasion

Maskwacis RCMP are searching for three suspects in a home invasion (with photos)

CRTC report finds ‘misleading, aggressive’ sales tactics used by telecom industry

Report recommends measures to make a fairer situation for consumers

Crude-by-rail shipments set new record in December despite lower price discounts

Canada exported nearly 354,000 barrels per day of oil, up seven per cent from November

Do you live with your partner? More and more Canadians don’t

Statistics Canada shows fewer couples live together than did a decade ago

Most Read