Thermory acquired a 100% stake in the Latvian company VMS Timber - Thermory

Thermory acquired a 100% stake in the Latvian company VMS Timber

Thermory AS, a leading producer of thermally modified wood, acquired a 100% stake in the Latvian sawmill VMS Timber SIA.

The purpose of the acquisition is primarily to ensure the supply of aspen wood for Thermory’s Reola production unit, which produces sauna material. “Demand for sauna materials is showing a growing trend, and the availability of raw materials and supply stability are important to meet the demand. We are moving closer to both the raw material and the customer in the supply chain, which helps to increase the company’s efficiency,” says Simmo Soomets, CEO of Thermory.

Thermory will make an additional investment of more than 2 million euros in VMS Timber in the coming years. “We are investing in technology that will allow us to double the sawing capacity, and we will also increase the production capacity of saunas and small houses,” says Soomets.

VMS Timber will continue under the leadership of founder Matiss Kuba. “My goal when starting the company was to process wood in an efficient and environmentally friendly way. Thermory has the same values, ​​and I am glad that we are continuing this path together. In cooperation, we can offer greater efficiency and faster development,” says Matiss Kuba, CEO of VMS Timber.

VMS Timber is a Latvian sawmill founded in 2012, which mainly produces branchless hardwood for the sauna industry and, to a lesser extent, thermally modified wood saunas and small houses.

VMS Timber employs 103 people and had a turnover of 7.4 million in 2021. Prior to the transaction, Thermory owned 50 percent of the company.

Thermory is a chemical-free wood processing company founded in Estonia in 1997, which produces decking boards, exterior and interior cladding boards, sauna material and ready-made saunas using thermal modification technology. The company’s production units are located in Estonia, Finland, Latvia and Belarus. In addition, the company has sales units in the United States and Germany. The group employs 830 people and the turnover in 2021 was over 140 million euros.