Koskisen Corporation has agreed to acquire the business operations of Iisveden Metsä Oy. Located in Suonenjoki, Iisveden Metsä is a company mainly owned by private individuals and it produces approximately 140,000 m3 of softwood lumber per year. Iisveden Metsä Oy was founded by local forest owners in 1924.
The transaction will be carried out as a business acquisition, including, with certain limited exceptions, the entire business of Iisveden Metsä, including the factory property located in Suonenjoki with machinery and equipment, as well as inventories. The personnel of Iisveden Metsä, approximately 50 people, will be transferred to Koskisen as “old employees”. The transferred business does not include the target company’s receivables, cash and cash equivalents or other financial assets or liabilities.
"The acquisition of the business operations of Iisveden Metsä is a key part of Koskisen’s sustainable growth strategy, according to which we aim to increase the Group’s revenue to Euro 500 million by the end of 2027 through organic and inorganic growth. Once completed, this acquisition will support both goals: it will directly increase the revenue of Sawn Timber Industry by about one-third, while ensuring the availability of raw materials and enabling organic growth in Panel Industry," says Koskisen’s CEO Jukka Pahta.
As a result of the acquisition, Koskisen’s annual wood procurement volume will increase to approximately 1.9 million m3 (of which Iisveden Metsä’s share is approximately 400,000 m3) and sawing capacity to approximately 540,000 m3 (of which Iisveden Metsä’s share is approximately 140,000 m3).
The debt-free purchase price of the transaction is Euro 22.5 million and its cash part will be adjusted at the time of the completion of the transaction by a net working capital adjustment, which is not expected to be significant. In addition, Koskisen will pay the seller a maximum earnout of Euro 4 million if the conditions specified for the payment of the earnout, mainly related to sales price of sawn timber, are met during 2025–2027. Any earnout price will be paid during the first half of 2028.
The completion of the transaction requires the approval of Finnish and Estonian competition authorities, approval by a qualified majority at the Annual General Meeting of Iisveden Metsä and the fulfilment of certain other ordinary closing conditions. Koskisen expects the transaction to be completed during the first half of 2025.
Koskisen is an international wood processing specialist.
