Dubag buys timber mill from Stora Enso

Harriet Matthews
09 January 2020

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Dubag has bought a Germany-based timber mill from renewable materials producer Stora Enso.

Dubag acquired 100% of the shares in Stora Enso Timber Deutschland and established a newco.

The deal is expected to close in Q1 2020. Christoph Mödder told Unquote that the GP was originally contacted to initiate the deal in August 2019, and that the deal was handled on the vendor side by Stora Enso's internal M&A team.

Stora Enso said in a statement that it had chosen to divest its sawn construction timber mill to focus on the development of integrated mills for wood products. The company reported 2018 sales of €10.5bn and has 26,000 employees in 30 countries. The sale of the German production site will reduce its revenues by an estimated €40m.

Mödder told Unquote that Dubag would be establishing standalone business operations for the company as part of the carve-out, including an independent IT system. The GP would be open to making add-on acquisitions as part of its value creation strategy, according to Mödder. Harald Mayer will join the company's board as chief revenue officer, while its existing managing directors will remain in place.

Dubag invested from Leo II, which is currently 20% deployed. The vehicle held a final close in September 2019 on €40m and generally deploys equity cheques of €8m.

Dubag acquired Gesellschaft für Reisevertriebssysteme from Thomas Cook Touristik in December 2019, as reported by Unquote.

Company
The mill is based in Pfarrkirchen, Germany, and employs 90 staff. It reports revenues of 45m. The production site was originally established in 1939 and was known as Holzwerke Wimmer. It was owned by the Wimmer family until its acquisition by Stora Enso in 2005, where it became a sawn construction timber (Konstruktionsvollholz, KVH) production site for the company.

People
Dubag – Christoph Mödder (investment professional).
Stora Enso Timber Deutschland – Axel Quaiser, Michael Trost (managing directors).

Advisers
Equity – Heuking Kühn Lüer Wojtek, Andreas Lenz (legal); Dr Dautel + Kollegen (tax).