HELSINKI (News release) -- Stora Enso intends to divest its wood products DIY (Do It Yourself) unit in Amsterdam, the Netherlands to Megahout, backed by the private equity company Quadrum Capital. Closing is expected in Q3 2023, subject to regulatory approvals and consultation with employee representatives.

The intended divestment of Stora Enso Timber DIY Products B.V. is in line with Stora Enso's long-term strategy to focus on developing integrated mills for wood products production. The Amsterdam planing site is a small non-integrated unit with limited investment and growth opportunities and thus considered a non-core asset for Stora Enso.

"We are very pleased to have found a good home for our Amsterdam site. Megahout is in a better position to give the mill the attention it deserves and ensure a long-term development", says Lars Völkel, Executive Vice President Stora Enso division Wood Products.

The intended divestment will reduce Stora Enso's planing capacity by 80,000 m3 (total Group planing capacity: 2,495,000 m3 in 2022). The Amsterdam site employs approximately 60 people whose contracts will be transferred as part of the intended transaction. The intended divestment's impact on Stora Enso's sales, operational EBIT and net debt will not be material.