Bergs Timber AB has signed a letter of intent with AB Fogelfors Bruk regarding a potential acquisition of all shares in Fågelfors Hyvleri AB.
The transaction is subject to the signing of a share purchase agreement (“SPA”), conducting a due diligence to the satisfaction of Bergs Timber, financing and board decision. The company will make an announcement once the SPA is signed and closing of the transaction is planned to 30 June 2019. The letter of intent grants Bergs Timber exclusivity for the period up until 30 June 2019.
The indicative purchase price for the shares in Fågelfrors Hyvleri is SEK 48 million ($5 million). SEK 30 million ($3.1 million) is intended to be paid in cash and SEK 18 million ($1.9 million) in newly issued class B shares in Bergs Timber AB.
Fågelfors Hyvleri is a wood pellet producer with an annual capacity of approx. 90,000 tons of pellets and approx. 20,000 tons of heating logs. In addition, Fågelfors Hyvleri operates a planing mill with an annual capacity of approx. 30,000 cubic meters.
“Fågelfors Hyvleri suits very well in our strategy to increase further processing. It is also well located in the area around our Swedish saw mills,” says Peter Nilsson, CEO of Bergs Timber.
Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.
Photo: Peter Nilsson, CEO of Bergs Timber