Press release for AS Toftan / Combiwood

Combiwood Grupp OÜ acquires AS Toftan

The owners of AS Toftan and the management board of Combiwood Grupp OÜ ("Combiwood") have signed an agreement under which Combiwood will acquire 100% of the shares in AS Toftan. Completion of the transaction is subject to customary competition authority approval.

AS Toftan will continue to operate under its current name and brand, with Martin Arula remaining as CEO.

Combiwood is one of Estonia’s leading vertically integrated woodworking groups, employing approximately 900 people with annual revenues of around EUR 210 million. The group operates several timber processing factories across Estonia. The acquisition of AS Toftan, a profitable company with modern production capacity in Southern Estonia, is well aligned with Combiwood’s portfolio. The transaction is expected to support the company’s long-term growth and continued investment in sustainable wood processing.

Together, the two companies will have combined revenues of approximately EUR 276 million and a total of around 990 employees.

Comment from Karl Hedin, majority owner of AS Toftan:

"We are pleased to have found a new owner in Combiwood. Their way of working aligns well with Toftan’s culture and operations. Through this acquisition, Combiwood gains access to one of Estonia’s most modern sawmills, creating a strong platform for continued development. Together, the two companies will be able to strengthen their customer offering and continue to grow – both in existing and new markets."

Comment from Martin Arula, CEO and minority shareholder of AS Toftan:

"I am looking forward to working together with Combiwood. We share the same values and a common view on long-term business development, which provides a solid foundation for collaboration. By exchanging knowledge and resources, we will be able to grow even stronger. Together, we are taking a significant step toward becoming one of the leading woodworking groups in the Baltics."

Comment from Janek Antipin, Chairman of the Board at Combiwood:

"We’re excited to welcome Toftan into the Combiwood family. Toftan has a strong reputation, modern production facilities, and a dedicated team that aligns perfectly with our values and ambitions. With this step, we’re continuing to create added value in export markets through the strengths of our vertically integrated group.”