Billerud has reached an agreement with investment firm Mimir Group regarding the sale of Managed Packaging. The transaction is expected to be completed in August 2023.
Managed Packaging offers customized packaging solutions to global brands and retail chains with manufacturing in Asia and has a large network of production partners. The company, which operates in Asia, Europe, and the USA, employs 143 individuals. In 2022, the company reported net sales of SEK 770 million, which were accounted for under the Solutions & Other segment. Billerud initially acquired a 30% stake in Managed Packaging in 2011, followed by the remaining 70% in 2013.
The decision to divest the Managed Packaging business unit stems from Billerud’s strategic focus on packaging materials, leading to a diminished strategic significance of service offerings. By selling the business unit, Billerud aims to streamline operations, reduce complexity, and ultimately have a positive impact on its EBITDA margin.
“Managed Packaging has contributed to Billerud with expertise in optimization of fiber-based packaging solutions for global brand owners, but there are no synergies with our core business, which is our focus in the years to come. Managed Packaging will now get an owner who wants to develop the business to benefit employees and customers,” says Christoph Michalski, president and CEO.
The transaction is planned to be completed in August 2023 and is expected to result in a positive result effect for Billerud of approx. SEK 20 million, which will be reported as an item affecting comparability in the third quarter. The planned divestment’s impact on Billerud’s EBITDA and net debt will be immaterial.