KPMG in Latvia supports HS Timber Group

The KPMG team in Latvia provides support for HS Timber Group's acquisition of Kurekss

HS Timber Group, one of the largest woodworking companies in Europe, has signed an agreement with the Latvian wood processing company Kurekss SIA for the acquisition of 100% of its shares. The combined financial and tax team of KPMG in Latvia, along with the respective KPMG office teams in Austria, assisted the client HS Timber Group in acquiring one of the largest wood processing companies in the Baltics - Kurekss SIA, as well as the wood pellet production company - Kurzemes Granulas SIA. The transaction is still awaiting approval from the competition authority.

It was previously reported that in January of this year, HS Timber Group acquired the Latvian wood processing company Vika Wood SIA, marking a significant step in the company's long-term strategy implementation and the expansion of its sustainable service portfolio.

Kurekss is recognized as one of the leading sawmills in the Baltic region. It also owns the pellet production company Kurzemes Granulas SIA. The company sources raw materials from responsibly managed forests that meet HS Timber Group's sustainability standards. With an annual production of 250,000 m³ of kiln-dried sawn timber and 150 qualified employees, Kurekss is one of the largest sawmills in the region.

Experienced financial and tax experts from KPMG Latvia, in close collaboration with KPMG Austria, representing the buyer's side, provided in-depth analysis and support throughout the transaction process. The financial team, consisting of Artūrs Petrovs and Artūrs Aleksandrovičs and Paula Sakne conducted a thorough financial due diligence and assisted with the preparation of the share purchase agreement (SPA). Meanwhile, the tax team – Steve Austwick, Olga Jenate and Arta Groma – conducted in-depth tax due diligence, provided advice on tax structuring and tax aspects related to the transaction closure, and also assisted with the preparation of the SPA.

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