Södra, one of Sweden’s largest forest owners’ associations, has announced an agreement to divest its forest holdings in Latvia and Estonia to Ingka Investments, the investment arm of Ingka Group, which is the largest IKEA retailer. The deal, valued at €720 million (approximately SEK 8 billion), marks a significant milestone in Södra’s ongoing strategy to refine and renew family forestry by focusing on its members’ forests in southern Sweden.
The divestment represents a significant strategic shift for Södra, which earlier this year decided to sell its Baltic forest assets to concentrate on maximizing value from its Swedish operations. With over 50,000 members, Södra aims to enhance profitability and long-term competitiveness by prioritizing innovation and sustainable management of member-owned forests rather than maintaining international holdings.
The agreement follows a detailed process to identify the right buyer, culminating in Ingka Investments’ acquisition. The transaction includes all of Södra’s forest properties in both Latvia and Estonia. Once finalized, Södra’s remaining presence in the Baltics will consist of two timber import companies—one in each country—supporting its continued trade and operations in the region.
Completion of the deal is contingent upon competition reviews in Latvia and Estonia, as well as additional approval in Latvia regarding foreign direct investment. The financial impact of the divestment will be recorded in the quarter in which all regulatory approvals are granted and the transaction is officially completed.
For Ingka Investments, the acquisition aligns with its long-term commitment to sustainable resource management. The company plans to continue the responsible forestry practices established by Södra while ensuring that the forests remain productive and environmentally resilient.
KEY QUOTES:
“As a forest owners’ association with more than 50,000 members in southern Sweden, our mission is focused on our members’ forests – not on owning forest abroad. The holdings in the Baltics has been a good financial investment for Södra, and this divestment enables us to sharpen our focus on making more from every tree and strengthening our long-term competitiveness. It contributes to enhancing the profitability of the forest estate in a responsible way. We now look forward to successfully concluding this transaction together with Ingka Investments.”
Lotta Lyrå, President and CEO of Södra
“Following the acquisition, we will continue the great forestry work that Södra has established in these well-maintained forests. Our goal is to manage the forests for the long-term, preserving and improving their health, whilst providing this renewable resource for furniture and other uses.”
Peter van der Poel, Managing Director of Ingka Investments
