Sorainen Estonia has advised Metsaliitto Cooperative on the sale of its subsidiary Metsa Wood Eesti to the Estonian Combimill.
The parties agreed on commercial cooperation in raw material procurement as well as by-product and sawn timber sales. The transaction is not expected to have a significant impact on Metsa Wood's financial results.
"This arrangement is in line with Metsa Wood's strategy of industrial efficiency and investment in resources in the continuous development of the competitiveness and productivity of Metsa Wood's core business," said Esa Kaikkonen, Executive Vice President of Metsa Wood.
Metsa Wood Eesti is the Estonian subsidiary of Metsa Wood and its sawmilling activities are located at the production unit in Reopalu, Jarva County, central Estonia. The annual capacity of the Reopalu sawmill is 75,000 m3 of spruce timber. Turnover of Metsa Wood Eesti amounted to approximately EUR 16 million last year and the company employs 38 people. Combimill is a prominent Estonian producer of pine sawn timber with a production facility located in Koidama, Estonia.
Sorainen provided transaction advice, coordinated merger clearance notification, and provided closing support. The team was led by Partner Toomas Prangli, Specialist Counsel Kadri Kallas, and Senior Associate Paul Kunnap.
