Stora Enso Sells 12.4% of Swedish Forest Assets for €900 Million Deal

Stora Enso's Strategic Divestment of Forest Holdings



Stora Enso Oyj has reached an agreement to sell approximately 175,000 hectares of forest land, which accounts for 12.4% of its total holdings in Sweden. This significant transaction is valued at €900 million, translating to about SEK 9.8 billion. The divestment is part of Stora Enso's ongoing strategy to optimize its assets while strengthening its financial position.

Details of the Transaction


The buyer for this substantial parcel of land will be a partnership involving Soya Group and a consortium led by MEAG, which is known as the asset manager for Munich Re, one of Germany's leading insurance companies. Under the terms of this arrangement, Soya Group will hold 40.6% of the newly formed entity, while the MEAG consortium will acquire 44.4%. Stora Enso will maintain a 15% ownership stake, providing it continued access to valuable resources.

To ensure the ongoing supply of wood, Stora Enso and the new entity have entered into a 15-year wood supply agreement, with provisions for a potential additional 15-year extension. This strategic step is designed to secure wood availability for Stora Enso’s various operations across Sweden, solidifying its commitment to sustainable forestry practices.

Financial Implications


The divestment is expected to impact Stora Enso’s adjusted EBITDA, with an anticipated decrease of around €25 million annually. Of this amount, approximately €15 million is projected to be cash-related. The enterprise value associated with these forest assets aligns with their fair value on the company’s books. Notably, the proceeds generated from this sale will substantially contribute to lowering Stora Enso’s net debt, projected to reduce by €790 million.

Leadership Insights


Stora Enso's President and CEO, Hans Sohlström, expressed confidence in this strategic move, stating, “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.” He added that he looks forward to fostering a robust partnership with the new owners.

Next Steps


Sorting through regulatory requirements, the transaction awaits clearance from competition authorities. It is anticipated to conclude in the third quarter of 2025. It’s noteworthy that Stora Enso disclosed plans for this divestment back in October 2024, indicating a clear long-term strategy with a focus on fiscal prudence and resource management.

Stora Enso’s Commitment to Forestry


The core ethos of Stora Enso is rooted in the belief that sustainable forestry is vital. The company prides itself on being a leading provider of renewable products, including packaging, biomaterials, and wooden construction products. Additionally, Stora Enso ranks among the largest private forest owners worldwide, emphasizing its pivotal role in promoting environmentally friendly practices.

In 2024 alone, Stora Enso employed approximately 19,000 individuals and reported revenues of €9 billion, underlining its substantial impact in the forestry sector. The company’s shares are publicly traded on Nasdaq Helsinki and Nasdaq Stockholm, as well as across OTC markets in the USA.

In conclusion, this divestment not only reflects Stora Enso’s adaptive strategies in a fluctuating market but also highlights its resolve to maintain sustainability at the heart of its operations. As the company moves forward, it will continue to seek innovative ways to leverage its extensive forestry assets, ensuring resilience and growth in the years ahead.

Topics General Business)

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