Canfor Corp. has signed a deal to buy a 70 per cent stake in Swedish sawmill company Vida Group for about $580 million.
Under the agreement, the current owners of Vida will retain a 30 per cent interest and continue to manage the day-to-day business.
The privately held company has nine sawmills in southern Sweden with an annual production capacity of 1.1 billion board feet.
Vida also has nine value-added facilities that include premium packaging, modular housing, industrial products and energy.
Canfor says it expects to be able to finance the acquisition with cash and liquidity on hand, but will complete an extension and expansion of its existing operating and term loan facilities.
The deal is expected to close in the first quarter of next year.
Companies in this story: (TSX:CFP)
The Canadian Press