HS Timber Group has signed an agreement to acquire 100% of the shares in Vika Wood SIA, a Latvian wood processing company, from Bergs Timber AB. The deal, pending competition authority approval, is expected to close in the first quarter of 2025, according to the companies involved.
Vika Wood, located near Talsi in Western Latvia, is known for its high-quality kiln-dried sawn timber under the established Vika brand. The sawmill has an annual production capacity of up to 300,000 m3 and employs approximately 140 people. Its products are sold in over 30 countries, and the company plays a significant role in the regional value chain by supplying byproducts to pellet producers and the pulp industry.
Vika Wood’s brand, management, and business activities will remain unchanged following the acquisition. CEO Haralds Kronbergs and his management team will continue to lead operations. HS Timber Group has committed to further investments and development projects at the site.
The sawmill processes locally sourced softwood logs from sustainably managed forests, aligning with HS Timber Group's strategy for sustainable growth. "This acquisition aligns seamlessly with our strategy to strengthen our operations and grow sustainably. Having access to high-quality raw materials and entering the attractive Baltic market allows us to serve our customers even better," said Juergen Bergner, CEO of HS Timber Group.
Peter Nilsson, CEO of Bergs Timber AB, noted that the divestment reflects their strategy to focus on more consumer-oriented products. He acknowledged Vika Wood's positive reputation and expressed confidence in HS Timber Group's commitment to continued investments and development.
Bergs Timber AB acquired Vika Wood from Norvik Timber Industries in 2018.
