Austria-headed wood processing major HS Timber Group has announced that it has signed an agreement to acquire 100 percent of the shares in the Latvian wood processing company Vika Wood SIA from its Swedish owner Bergs Timber AB.
Founded in 1995, the sawmill processes locally sourced softwood logs from sustainably managed forests at a site near Talsi in Western Latvia. It has an annual production capacity of up to 300,000 m3 of kiln-dried sawn timber, making it a valuable addition to HS Timber Group’s portfolio of products and markets.
This acquisition aligns seamlessly with our strategy to strengthen our operations and grow sustainably. By having access to high-quality raw materials and entering the attractive Baltic market, we can serve our customers even better, said Jürgen Bergner, CEO of HS Timber Group.
Vika Wood specializes in high-quality coniferous sawn timber, which is sold to more than 30 different countries. The sawmill also plays a crucial role in the regional value chain, supplying byproducts to pellet producers and the pulp industry.
With a workforce of around 140 employees, Vika Wood is one of the most efficient sawmills in the Baltic region and is an important employer.
CEO Haralds Kronbergs, together with his experienced management team, will remain and help develop Vika Wood into the future.
The divestment of Vika Wood follows Bergs Timber’s strategy to concentrate on more consumer-oriented products. Vika Wood has a good reputation, and we thank CEO Haralds Kronbergs and his team for the successful years in Bergs Timber. HS Timber Group is a good new owner with a clear vision to continue investments and to develop the Vika Wood organisation and brand, said Peter Nilsson, CEO of Bergs Timber.
The transaction, which is subject to approval by competition authorities, is expected to close within the first quarter of 2025. Both parties have agreed to treat the terms of the transaction confidentially.
Brand, Management, and business activities of Vika Wood will remain unchanged. Upon signing, HS Timber Group announced that investment projects and development plans will be further developed.
