Forest owners’ cooperative Södra is selling its forest assets in the Baltics to Ingka Investments for €720m.
Södra said it has agreed to sell its forestry holdings in Latvia and Estonia, leaving the group with just two timber import companies in the Baltics, one operating in Latvia and one in Estonia.
Södra said it is selling the assets to sharpen its focus on its members’ forests in Sweden and strengthen the group’s “long-term competitiveness”.
Lotta Lyrå, president and CEO of Södra, said: “As a forest owners’ association with more than 50,000 members in southern Sweden, our mission is focused on our members’ forests – not on owning forest abroad.
“The holdings in the Baltics have been a good financial investment for Södra, and this divestment enables us to sharpen our focus on making more from every tree and strengthening our long-term competitiveness. It contributes to enhancing the profitability of the forest estate in a responsible way.”
Peter van der Poel, managing director of Ingka Investments, said: ”Following the acquisition, we will continue the great forestry work that Södra has established in these well-maintained forests.
“Our goal is to manage the forests for the long-term, preserving and improving their health, whilst providing this renewable resource for furniture and other uses.”
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