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Dubag Group fund to buy Stora Enso's German timber mill

Finnish wood and paper products provider Stora Enso Oyj agreed to divest its sawn construction timber mill in Pfarrkirchen, Germany, to Dubag Group-managed private equity fund LEO II. - VV1 GmbH.

The transaction is expected to complete in the first quarter and is not expected to have a material impact on Stora's operational EBIT and net debt.

The sale is in line with the seller's strategic shift to focus on developing integrated mills for wood products production. The divestment is forecast to reduce Stora's annual sales by €40 million and sawn construction timber production capacity by approximately 145,000 cubic meters.