Bergs Timber AB has signed an agreement with AB Fogelfors Bruk to acquire all shares in Fågelfors Hyvleri AB. The agreement is based on the letter of intent published on May 8, 2019. The acquisition was completed and the shares in Fågelfors Hyvleri were taken over in conjunction with the signing of the agreement. Of the total purchase price, SEK 48 million ($5.2 million), SEK 18 million ($1.9 million) is paid in newly issued shares in Bergs Timber, as the company says in the press release received by Lesprom Network.
The acquired business mainly consists of a completely new plant for the production of wood pellets with a capacity of 100,000 tones per year. In addition, there is capacity for a production of 20,000 tons of heating logs. A great part of the raw material will be retrieved from the by-products generated at Bergs Timber's Swedish plants.
The other part of the acquired company consists of a planing mill, currently with a production of approximately 30,000 cubic metres planed goods per year.
Based on Bergs Timber's forecast of price development for pellets and raw material, the acquisition is expected to contribute to the Group's net sales by SEK 150-160 million ($16-17.2 million) per year with an EBITDA margin in excess of other operations within Bergs Timber. In addition to a favorable cash flow, the acquisition is expected to provide a certain contribution to earnings per share already this year.
