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Canfor’s Vida AB Expands Production Capacity with Swedish Acquisition

Story Highlights
  • Canfor’s Vida AB acquires AB Karl Hedin Sågverk for $164 million, expanding in Sweden.
  • The acquisition boosts Vida’s production capacity by 230 million board feet, enhancing operations.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Canfor’s Vida AB Expands Production Capacity with Swedish Acquisition

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Canfor ( (TSE:CFP) ) just unveiled an update.

Canfor Corporation announced that its subsidiary, Vida AB, will acquire AB Karl Hedin Sågverk for $164 million, expanding its operations into Central Sweden. This acquisition will increase Vida’s annual production capacity by 230 million board feet, reaching a total of approximately 2.1 billion board feet. The strategic move is expected to yield annual synergies of $15 million within three years, enhancing Vida’s operating platform and diversifying its presence in Sweden. The transaction will be financed largely through cash on hand and new equity from minority Vida AB shareholders, and is subject to customary closing conditions and regulatory approvals.

The most recent analyst rating on (TSE:CFP) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Canfor stock, see the TSE:CFP Stock Forecast page.

Spark’s Take on TSE:CFP Stock

According to Spark, TipRanks’ AI Analyst, TSE:CFP is a Neutral.

Canfor’s overall stock score is impacted by significant financial challenges and a poor valuation, indicating high financial risk. While technical analysis and strategic transformations provide some positive outlook, the risks associated with market conditions and operational inefficiencies weigh heavily on the stock’s attractiveness.

To see Spark’s full report on TSE:CFP stock, click here.

More about Canfor

Canfor Corporation is a global leader in the manufacturing of high-value, low-carbon forest products, including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets, and renewable energy. Headquartered in Vancouver, British Columbia, Canfor operates over 50 facilities across Canada, the United States, and Europe, producing renewable products from sustainably managed forests. The company holds a 77% stake in Vida AB, Sweden’s largest privately-owned sawmill company, and a 54.8% interest in Canfor Pulp Products Inc.

Average Trading Volume: 122,824

Technical Sentiment Signal: Strong Sell

Current Market Cap: C$1.67B

See more data about CFP stock on TipRanks’ Stock Analysis page.

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