TGS Baltic has advised Swedish company Bergs Timber on its acquisition of Vika Wood and Byko-lat (Latvia), EWP AS and Laesti AS (Estonia), and Norvik Shipping (United Kingdom) from Icelandic Norvik hf.
According to Berg Timber, "the purchase price will be made up of 170 million newly issued shares in Bergs Timber as well as a cash payment of SEK 270 million.”
Bergs Timber, founded in 1919, is a Swedish sawn and processed timber producer and seller which offers spruce and pine wood products and linseed oil treated timber, as well as by-products such as bark, cellulose chips, sawdust, splinters, dry chips, cutter shavings, briquettes, forestry waste, and hardwood chips. The company is active in three business areas: forestry services for forest owners, forest products, and timber preservation.
Norvik Timber Industries is a privately owned Icelandic forest industry company operating in Latvia, Estonia, Russia, Sweden, and the United Kingdom. Norvik Timber Industries is part of the Norvik Group.
TGS Baltic describes the deal, which is expected to close in the second quarter of 2018, as "one of the largest M&A deals in Estonia in the first quarter of 2018.”
“We have now, for a couple of months, had the opportunity to get to know and evaluate Norvik’s timber operations. These companies are well managed and profitable with an engaged staff and quality products,” said Peter Nilsson, CEO of Bergs Timber, in a company press release. He added that, "I am convinced that the companies strengthen each other and that the acquisition is good both for our staff and our owners.”
Jon Helgi Gudmundsson, Chairman of the Norvik Board, commented: “Since the sale of Broakulla to Bergs Timber we have been a large shareholder in the company. During this time we have experienced the strength and ambitions of the company and the company‘s executive management. We are confident that this transaction is the right way to further develop our companies, not least due to our and Bergs Timber’s management’s shared view of the importance of decentralized responsibility and the use of current existing brands.”
TGS Baltic’s team included Partners Kadri Kallas and Andra Rubene, Associate Partner Nauris Grigals, Senior Associate Meree Punab, and Associate Kart Raud.
TGS Baltic did not reply to our inquiries about counsel for sellers.