The transaction will strengthen Stora Enso’s wood supply operations and reinforce its position in sawlog and pulpwood sourcing in the Baltic Rim wood market. Stora Enso’s annual wood procurement in Finland will hence increase by approximately 1.7 million m³ and the Group’s total saw-milling capacity by approximately 700,000 m³. The acquisition is expected to gradually generate synergies of approximately EUR 15 million annually once the new sawmill in Oulu is fully operational.
Nov 7, 2024
Stora Enso has entered into an agreement to acquire 100 percent of the Finnish sawmill company Junnikkala Oy. This acquisition aims to secure a cost-efficient wood supply to Stora Enso’s packaging board site in Oulu, Finland, and support its wood products business with new production assets.
The total enterprise value (EV) for the transaction is up to EUR 137 million, a significant part of it being contingent upon achieving specific production milestones. The transaction is subject to customary closing conditions including regulatory approvals, and is expected to close in the first half of 2025.
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Junnikkala Oy is a Finnish producer of sawn timber and processed wood products for domestic and export markets. It operates three sawmills in Finland, including its new state-of-the-art sawmill, less than 10 km from the Stora Enso Oulu site. The acquired sawmills will create synergies with the integrated board site in Oulu through long-term supply of raw materials such as wood chips, pulpwood and internally sourced biomass going from the sawmills to the Oulu site.
“We are preparing for the start-up of our new converted packaging board line in Oulu and this acquisition will establish a solid foundation for our wood procurement. It will also further enhance operational efficiency and optimize the Oulu production site and sawmills as an integrated unit, while also strengthening our wood products offering,” says Hans Sohlström, Stora Enso’s President and CEO.
The transaction will strengthen the Group’s wood supply operations and reinforce its position in sawlog and pulpwood sourcing in the Baltic Rim wood market. Stora Enso’s annual wood procurement in Finland will hence increase by approximately 1.7 million m³ and the Group’s total saw-milling capacity by approximately 700,000 m³.
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The integration of the value chain will reduce costs and improve resource efficiency. The acquisition is expected to gradually generate synergies of approximately EUR 15 million annually once the new sawmill in Oulu is fully operational, and will have no operational impact on Stora Enso’s current sawmills.
