The Moelven Group has signed an agreement for the acquisition of Vänerply. The acquisition of Vänerply means that an important product for Moelven board materials will now also be produced in-house.
Vänerply's geographical location is favourable for Moelven and will be an excellent addition to the group's production and Moelven's extensive distribution of board materials produced by our collaboration partners. As a part of the Moelven Group, Vänerply will become part of a more extensive industrial network which will contribute to synergies in areas including raw materials purchasing, distribution and marketing.
Scandinavia's only producer of plywood
Vänerply is located in Otterbäcken and produces plywood from spruce and pine. The company has the capacity to produce approximately 90,000 m3 or approximately 6 million m2 of plywood per year. In 2010, the company had a revenue of SEK 299 million, with approximately 160 employees. The most important market is Northern Europe with particular focus on Scandinavia.
Positive for both Moelven and Vänerply
Mikael Axelsson, CEO of Moelven Wood AB, is delighted with the decision:
- We are acquiring Vänerply to become an even better supplier and collaboration partner for our customers. Vänerply is a strong brand, its products are good and geographically it is favourably placed for Moelven's existing distribution concept for wood-based products for trade and industry.
- Our current revenue from the Swedish market amounts to approximately SEK 800 million, and of this more than SEK 300 million is accounted for by board products. Approximately SEK 140 million of this figure can be attributed to plywood, and operations are growing. The acquisition of Vänerply means that an important product for Moelven in terms of volume can now be partially produced in-house. However, I would also like to stress that we will be continuing to serve the market with materials purchased from others, in exactly the same way as we have done up until now, says Axelsson.
CEO Leo Persson at Vänerply also sees the acquisition of Vänerply by Moelven as a positive step:
- Moelven is an important player on the Scandinavian market and will be a strong and enduring owner. I am convinced that our products and our knowledge will fit in well with Moelven's other operations. This will provide Vänerply with numerous synergistic benefits which will contribute to strong and longterm development. I am primarily thinking of the raw materials situation and the market for plywood here, both in the short and long term, says Persson.
Moelven Wood AB supplies a wide range of wood-based products for trade and industry. An effective distribution system with a wide selection of products, both produced in-house and purchased, in the same system are important to be able to provide customers with a good service.
- Vänerply is in an ideal strategic location, close to our other operations and mid-way between the two distribution centres in Valåsen-Karlskoga and Lovene-Töreboda. We have no experience of plywood production, but they do at Vänerply. With their quality products and our distribution system and extensive product range, it is a win-win situation for all concerned, says Axelsson.
Will develop the company
- We are acquiring Vänerply to operate our business with foresight and profitability. We do not intend to substantially increase the volume produced with Vänerply, but will still develop the company's competitiveness through efficiency improvements. Vänerply is an organisation with vast knowledge and strong commitment, which we look forward to developing together with its employees. I believe that in partnership we can succeed in creating something excellent, concludes Axelsson.
The date for the takeover has yet to be determined. An application has been submitted to the Norwegian competition authorities, and one condition for the conclusion of the acquisition is that the authorities give the green light for the takeover. Vänerply will become part of the Moelven Group as soon as this occurs.
For further information:
Mikael Axelsson, CEO Moelven Wood AB, +46 (0)7 05 71 39 49
Leo Persson, CEO Vänerply AB, +46 (0)7 08 22 55 38
Bjarne Hönningstad, Divisional Manager Moelven Wood, +47 (0)97 59 12 01
Hans Rindal, Group Manager Moelven Industrier, +47 (0)90 69 69 10