The Austrian HS Timber Group has signed an agreement to acquire 100% of the shares in the Latvian wood processing company Vika Wood SIA from the Swedish owner Bergs Timber AB.
The transaction is still subject to approval by the competition authority, with closing expected within the first quarter of 2025.
HS Timber Group said the acquisition of a leading sawmill in Latvia strengthened its sustainable operations portfolio, with Vika being a “renowned brand”. The sawmill is located near Talsi in Western Latvia.
Terms of the transaction are to remain confidential. Brand, management, and business activities of Vika Wood will remain unchanged. Haralds Kronberg (CEO) together with his experienced management team at site will continuously develop Vika Wood into the future.
Upon signing, HS Timber Group announced that investment projects and development plans will be further developed.
Founded in 1995, Vika Wood has an annual production capacity of up to 300,000m³ of kiln dried sawn timber and a workforce of around 140 employees.
“This acquisition aligns seamlessly with our strategy to strengthen our operations and grow sustainably,” said Jürgen Bergner, CEO of the HS Timber Group.
“By having access to high-quality raw materials and entering the attractive Baltic market, we can serve our customers even better.”
“The divestment of Vika Wood follows Bergs Timber’s strategy to concentrate on more consumer-oriented products,” said says Peter Nilsson, CEO of Bergs Timber.
“Vika Wood has a good reputation, and we thank CEO Haralds Kronbergs and his team for the successful years in Bergs Timber. HS Timber Group is a good new owner with a clear vision to continue investments and to develop the Vika Wood organisation and brand.”
Vika Wood’s sawn timber is sold to more than 30 different countries. The sawmill also plays a crucial role in the regional value chain, supplying byproducts to pellet producers and pulp industry.
