Swedish forest owners' association and forest industry major Södra has announced that it has reached an agreement to divest its shares in Sunpine AB to VAROPreem Sverige AB. The transaction is pursued together with shareholders Sveaskog Förvaltning AB and Lawter Europe B.V., a subsidiary of Harima Chemicals Inc., and is now undergoing the necessary approvals before it can be completed.
Södra has been a partner in crude tall oil processor Sunpine since 2008 with a 25 percent ownership stake, to drive the development and market of renewable products based on tall oil, a by-product of the pulping process, and an important part of Södra’s strategy to make more of each tree and thereby increase the profitability of its members’ forests.
Sunpine is now entering a phase that requires a different type of ownership and expertise, which is why Södra has decided to sell its ownership stake to an investor who can take the company forward.
Sunpine is now entering a new phase where our business assessment is that another owner can better support the company, taking the next step. Our purpose of driving the development and market for tall oil has been accomplished, so for Södra, this decision and the agreement are about focusing our resources where they add the most long-term value to our members’ forests, explained Lotta Lyrå, President and CEO of Södra.
Following an offer from a third party, VAROPreem exercised its right of first refusal and will acquire all outstanding shares in the Company.
The impact on Södra’s financial results will be reported in the first half of the year, subject to the regulatory approval of the transaction.
Many potential synergies
According to Sunpine, the deal creates many potential synergies between two important players in the European market for fossil-free fuels.
Over the past 20 years, Sunpine has built a state-of-the-art production facility, developed patented technology, and established an organisation that demonstrates how sustainability and profitability can go hand in hand. Our current ownership structure has successfully supported Sunpine’s development, and we now look forward to continued growth together with new strong owners, with the long-term objective of increasing the share of renewable fuels in the transport sector, said David Öquist, CEO of Sunpine.
Sunpine is the world’s largest producer of Raw Tall Diesel, an advanced biofuel feedstock made from by-products of the pulp and paper industry. Raw Tall Diesel can be further refined into renewable diesel (HVO).
VAROPreem is Europe’s second largest and the world’s sixth largest producer of renewable transport fuels. The two companies play important roles at different levels of the value chain.
Sunpine is a profitable and very well-managed company positioned at the heart of the energy transition, and is an important contributor to Sweden’s and Europe’s fossil-free energy supply. They have built a corporate structure, a value chain, and a brand that enable sustainable and profitable growth. With VAROPreem as owner, I see strong opportunities for Sunpine to continue that growth, said Martin Forsén, Chairman of the Board of Sunpine.
The transaction is subject to customary regulatory approvals and is expected to be completed during the first half of 2026.
David Öquist views the deal as a confirmation of Sunpine’s efforts and the increasing interest in sustainable transport solutions.
Sunpine’s vision is ‘Fueling a better future’. Over the past two decades, we have built a strong reputation and credibility among customers and decision-makers in Sweden and across Europe in these matters. This transaction is a testament to that work, and together with VAROPreem, I look forward to continuing our growth journey, concluded David Öquist.
