Iida Group Holdings acquired a 75% stake in Russian lumber producer RFP Group for 60 billion yen ($525 million) at the end of 2021. As Iida Group notes in its 2021 fiscal year report, the synergies from the acquisition are unclear at this point.

“We will see the situation from various points of view and make a rapid decision so as not to undermine the value of the shares held by the existing shareholders. To that end, we will try to collect the right information and analyze it as the business situation in Russia is changing from moment to moment every day”, said the company.

In 2021 fiscal year, Iida’s business with RFP was about 2 billion yen ($15 million). Thus, the impact of the restriction on Russian timber imports to Japan was limited. Sales in Japan represent only about 10% of RFP’s total sales. Iida expects that rising global timber prices will increase the efficiency of RFP’s business.

About RFP Group

RFP is one of the largest forest companies not only in Russia but also in the world. Its areas with forest certification cover about 4 million hectares (1.08 times the size of Kyushu Island, the third largest in the Japanese archipelago.). The annual logging volume of roundwood, the official annual limit of which is up to 4.10 million cubic meters per year, covers

According to Iida Group, RFP revenue in 2020 amounted to $ 204 million, and operating profit – $ 8.5 million. The company’s debt at the end of 2020 is about $ 300 million, or about ten EBITDA indicators, RFP head Konstantin Lashkevich said.

The post Acquisition of Russia’s RFP Group by Japanese holding unclear appeared first on Global Wood Markets Info.

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