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Pellets & Solid Fuels

Bergs Timber reaches deal to divest Fågelfors pellets

Bergs Timber reaches deal to divest Fågelfors pellets
Fågelfors Pellets began production in 2007 and has an installed production capacity of around 75,000 tonnes per annum (photo courtesy Bergs).

Sweden-headed solid wood processing group Bergs Timber AB (Bergs) has announced that it, through its wholly owned subsidiary Bitus AB, has entered into an agreement to divest its pellet business in Fågelfors to Germany-headed bio-based fibre industry group J. Rettenmaier & Söhne Gmbh & Co KG (JRS Group).

Acquired by Bergs in 2029, the Fågelfors Pellets business produces animal bedding pellets, wood pellets, and briquettes for heating in Fågelfors, Sweden, and has approximately 15 employees.

The 75,000 tonnes per annum installed capacity plant supplies pellets bagged and in bulk.

The divestment is made through an asset deal where JRS agrees to acquire all assets related to the business. All employees who are currently linked to the business are offered continued employment.

Bergs has a focus on an increased degree of processing and we do not see any clear synergies between Fågelfors and Bergs’ other operations. We are pleased that JRS is acquiring the business, and they have clear synergies with their existing business, said Peter Nilsson, CEO of Bergs.

JRS Group is a privately held company with approximately 4,000 employees and operations worldwide at over 90 production and sales locations.

The Group is active in the manufacturing and selling of fibre-derived products based on wood and other renewable bio-based raw materials.

Core competencies in JRS Group include highly specialized in-house production process engineering and comprehensive technical application support for all market segments.

Subject to customary closing and approvals, the transaction, the value of which has not been disclosed is expected to be completed during the summer.

Bitus current wood preservation operations in Nybro are not affected by the intended transaction.

JRS has seen significant growth in its wood fiber products for applications like Animal Feed, Cat litter, industrial materials, and others. EC Bioenergy, a JRS affiliate, is one of the largest producers of energy pellets in Germany. We are delighted to see the Fågelfors operations and their team joining the JRS group of companies and enabling ample new growth opportunities for the future, said Nils Gersonde, CFO of JRS Group.

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