HS Timber Group acquires Vika Wood, strengthening its presence in the Baltic region

Austria's HS Timber Group, one of Europe's largest timber processors, has signed an agreement to fully acquire Latvia's Vika Wood SIA from Sweden's Bergs Timber AB. The transaction, which is expected to be finalized in the first quarter of 2025, is subject to competition authority approval.

Vika Wood is located in western Latvia near the town of Talsi. With an annual production capacity of up to 300,000 cubic meters of dry sawn timber and a team of about 140 employees, Vika Wood is one of the most efficient sawmills in the Baltic region.

"This acquisition aligns perfectly with our strategy of strengthening operations and sustainable growth. With access to high-quality raw materials and entry into the very attractive Baltic market, we can serve our customers even better," said Jürgen Bergner, CEO of HS Timber Group.

An important aspect of the transaction is the retention of the Vika brand as well as the existing management team. Haralds Kronberg will continue to lead the operations as CEO together with his team. HS Timber Group has already announced its intention to further develop the company's investment projects and development plans.

Established in 1995, Vika Wood specializes in the production of high quality softwood lumber using logs from sustainably managed forests in the region. The company exports to more than 30 countries and plays a crucial role in the regional value chain, supplying by-products to pellet manufacturers and the pulp and paper industry. With annual sales in excess of €70 million, 75% of total production is destined for export markets.

For Bergs Timber, the sale of Vika Wood is part of a broader strategy to focus on consumer-oriented products. Peter Nilsson, CEO of Bergs Timber, expressed confidence in the new owner's ability to continue to develop the organization and the Vika Wood brand.

HS Timber Group, based in Vienna, operates production facilities in Europe and South America, employs more than 2,800 people and supplies a wide range of timber products to customers in over 80 countries.