VANCOUVER, BC (News release) -- Canfor Corporation announced that its 77%-owned subsidiary, Vida AB, has completed the acquisition of AB Karl Hedin Sågverk from Mattsbo Såg AB and minority shareholders for $164 million, including $39 million in working capital. The transaction adds 230 million board feet of annual production capacity through seven facilities in Sweden and Latvia.

The acquisition raises Vida's total annual production to approximately 2.1 billion board feet. The facilities include seven sawmills and one pressure treatment plant, with 135 employees across the operations. The assets are strategically located in the Baltic Sea region, providing logistical access to key European markets.

Canfor expects annual cost synergies of $15 million within three years through alignment of marketing programs, optimization of log procurement, and streamlined operational practices.

The deal was financed with a combination of cash on hand and new equity contributions from Vida AB's minority shareholders. Integration of the facilities will be led by the VIDA team to ensure operational alignment across regions.

"We are excited to welcome the employees at AB Karl Hedin Sågverk's three sawmills in Karbenning, Krylbo and Säter into the Canfor family," said Susan Yurkovich, President and CEO of Canfor. "This acquisition strengthens Vida's geographic footprint, increasing access to high-quality timber resources in Sweden, while continuing to diversify Canfor's operations globally."