Canfor completes Vida deal

2/28/2019
Canfor, the Vancouver, British Columbia-based lumber producer, has completed its purchase of 70% of the Vida Group.

The Vida Group is Sweden’s largest privately-owned sawmill operation with an annual capacity of 1.1. billion board feet per year. This deal includes a purchase price of about 580 million Canadian dollars (US$440 million).

Additional assets operated by the Vida Group include 9 additional facilities that produce premium packaging, modular housing, industrial products, and energy.

“We are excited to welcome the Vida team to Canfor and we are looking forward to working with Vida to develop our business on a global scale,” said Don Kayne, president and Chief Executive Officer of Canfor. “We respect VIDA’s team, the quality of the wood products they produce, their strong customer relationships, and most importantly the value of the VIDA brand worldwide.”

Canfor recently reported that a sluggish U.S. housing market lessened demand for lumber, resulting in production at several facilities being curtailed and a 10% drop in fourth quarter sales. Sales for the year increased 10.5%, however.

Canfor’s operations include facilities in British Columbia, Alberta, North Carolina, South Carolina, Alabama, Georgia, Arkansas, and Mississippi. The company primarily produces softwood lumber and also owns a 54.8% share of Canfor Pulp Products, Inc.
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