The deal with investment firm Mimir Group is expected to close in August 2023.
The company is hoping for a positive effect on its results of approximately SEK 20 million (€1.7 million) from the transaction, which will be reported as an item affecting comparability in the third quarter.
Billerud added that the impact of this transaction on Billerud’s EBITDA and net debt will be immaterial.
Customised Packaging Solutions
Managed Packaging offers customised packaging solutions to global brands and retail chains. With manufacturing facilities in Asia, it has a large network of production partners.
The company generated net sales of SEK 770 million (€67 million) in 2022, reported under the segment Solutions & Other. Billerud acquired 30% of the business in 2011 and the remaining 70% in 2013.
Billerud said the intention to divest the business unit is a consequence of its goal to focus on packaging materials, which means a reduced strategic importance of service offerings.
Furthermore, the Swedish company said the sale will reduce complexity and positively impact Billerud's EBITDA margin.
Expertise In Optimisation
"Managed Packaging has contributed to Billerud with expertise in optimisation of fibre-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," said Christoph Michalski, president and CEO of Billerud.
"Managed Packaging will now get an owner who wants to develop the business, to the benefit of employees and customers," he added.