Bergs Timber acquires 100,000-ton-per-year pellet plant

By Erin Voegele | July 10, 2019

Sweden-based Bergs Timber signed an agreement with AB Fogelfors Bruk June 27 to acquire all shares in wood pellet producer Fågelfors Hyvleri AB. The acquired business primarily consists of a new 100,000-metric-ton-per-year pellet plant located in southeast Sweden. The facility can also produce 20,000 tons per year of heating logs.

Bergs Timber said much of the raw material used in the pellet plant will be sourced from the byproducts generated at its Swedish plants.

The company said the other part of the acquired company consists of a planing mill, currently with a production of approximately 30,000 cubic meters of planed goods per year.

The acquisition follows a letter of intent published May 8. Bergs Timber said the acquisition was completed and the shares in Fågelfors Hyvleri were taken over in conjunction with the signing of the acquisition agreement. The total purchase price was SEK 48 million ($5.1 million), of which SEK 18 was paid in newly issued shares of Bergs Timber.