24.02.22

Bergkvist Siljan group was sold to Mayr-Melnhof Holz by ESSVP IV

Bergkvist Siljan group was sold to Mayr-Melnhof Holz by ESSVP IV, a private equity fund advised by Orlando, strengthening Mayr-Melnhof Holz’s market positioning with an entry into the Nordic market

Bergkvist Siljan, a leading sawmilling Group in middle Sweden has been sold to Mayr-Melnhof Holz, an Austria headquartered sawmilling group which becomes through this transaction the third largest European sawmilling group. The newly created group will become a leading provider of sawmilling products in Europe and also globally through significant global export volumes.

Bergkvist Siljan produces around 850,000 cbm of spruce and pine sawn timber annually. The group consists of three modern sawmills as well as one of the largest container terminals in Sweden, with a capacity of up to 50,000 TEU per year, and a direct rail link to Gothenburg port. Michael Wolfran, CFO of Mayr-Melnhof Holz Holding AG, adds: „Bergkvist Siljan, with a turnover of almost 300 million Euros, employs 285 people. Both Mayr-Melnhof Holz and Bergkvist Siljan have a long tradition of family ownership over more than a hundred years, and together our sales make a perfect fit. Along with the Scandinavian market, the sawmill group serves the markets of the Far East, Western Europe, and North Africa.

ESSVP IV advised by Orlando has developed Bergkvist Siljan group over the recent years by integrating two previously independent sawmilling groups. Both companies were acquired by ESSVP IV from the respective family owners in succession situations. The carefully and diligently coordinated integration process allowed for substantial operational improvements of the combined Siljan Bergkvist group, a strengthening of the market positioning and the harvesting of significant synergies. In addition, processes and structures have been implemented which sets Bergkvist Siljan into a position to be now smoothly integrated in a larger corporate set-up.

Mayr-Melnhof Holz, with its family roots and impressive track record, is a great long-term majority owner for Bergkvist Siljan. We have come a long way since the merger between Siljan Group and Bergkvist-Insjön in 2019, becoming part of a successful international wood industry group is the natural next step for us. We thank ESSVP IV and Orlando for their support and cooperation since 2018 and look forward to working together with the team from Mayr-Melnhof Holz", says Ulf Bergkvist, Chairman of Bergkvist Siljan.
 
Mayr-Melnhof Holz, one of the leading companies in the European sawmilling and engineered wood products industry, will grow with this acquisition its lumber production capacity by approximately 50% to more than 2.7 million cubic meters of sawn timber per year and will target annual sales exceeding 1.0bn Euros.

About Mayr-Melnhof Holz

Mayr-Melnhof Holz is one of the leading companies in the timber processing industries in Europe, a major leader of glued laminated timber and a driving force in the advance of cross-laminated timber, the material for buildings of the future. Processing timber exclusively from sustainably managed forests, the roots of the Mayr-Melnhof Holz group of companies go back to 1850, drawing on more than 170 years of experience in processing this valuable raw material.

The corporate headquarters of Mayr-Melnhof Holz Holding AG are located in Leoben, Austria. The group includes three sawmills with pellet plants in Leoben (AT), Paskov (CZ) and Efimovskij (RU). Timber processing plants operate in Gaishorn (AT), Reuthe (AT), Wismar (DE) and Olsberg (DE).

About Bergkvist Siljan

Bergkvist Siljan is a leading sawmill group in middle Sweden which is a global supplier of sawn wood products. During the summer of 2019 the two groups Siljan Group and Bergkvist-Insjön merged and created Bergkvist Siljan. The Group has 285 employees in the middle of Sweden spread over 15+ location with a turnover of almost 3.0 billion SEK. The group operates three main sites in Insjön, Blyberg and Mora.

About ESSVP IV

ESSVP IV and its predecessor funds have a successful track record of investing in the German and Nordics mid-market for over 20 years. Investors of ESSVP have committed more than 1bn Euros in equity since inception in 2001.

Advised by Orlando, the funds invest in complex buyout situations with complexities being driven by e.g. succession situations, corporate carve-outs or companies in misunderstood industries. Portfolio companies of the funds typically generate revenues of 100-300 million Euros with EBITDA margins of around 5-15%. Key industries comprise business-to-business sectors such as industrials/manufacturing companies as well as companies in the fields of business services and trade.