Stora Enso, a provider of renewable products in packaging, biomaterials, and wooden construction, has entered into an agreement to divest approximately 175,000 hectares of forest land, equivalent to 12.4% of its total forest land holdings in Sweden, for an enterprise value of 900 million Euros, equivalent to SEK 9.8 billion.
Soya Group, will hold a 40.6% share in the newly formed company, and a MEAG-led consortium, will hold 44.4% of the shares. MEAG is the asset manager of Munich Re, a German insurance company. Stora Enso will retain a 15% ownership in the company.
Stora Enso and the divested entity will enter into a 15-year wood supply agreement with a possible additional 15-year extension. This will secure wood availability for Stora Enso’s Swedish business units. The new entity will also benefit from a forest management agreement under which Stora Enso will provide forest-related services. Due to the disposal, the group’s adjusted EBITDA is expected to decrease by approximately 25 million Euros per year, of which 15 million Euros is cash-related, based on full-year 2024 numbers.
The enterprise value of 900 million Euros is in line with the accounting fair value of the divested forest assets. The proceeds from the divestment are expected to reduce Stora Enso’s net debt by 790 million Euros.
“We remain committed to building a stronger Stora Enso. This transaction further strengthens our financial stability. By strategically monetizing a portion of our forest assets while retaining full access to wood supply, we are taking a proactive step to reduce our debt. This transaction not only enhances our financial flexibility but also allows us to capitalize on the inherent value of our forest assets. We look forward to building a strong partnership and a successful collaboration with the new owners,” says Stora Enso’s president and CEO Hans Sohlström.
The transaction is subject to clearance by the relevant competition authorities and is expected to be completed during the third quarter of 2025. Stora Enso announced the divestment plan in October 2024.
