Swedish paper and pulp company Billerud has agreed on the divestment of its Managed Packaging business unit to global perpetual investor Mimir Group.

The deal is scheduled to be completed later in August this year.

The decision to divest Managed Packaging, which offers packaging solutions to global brands and companies, comes as the Swedish company shifts its focus away from packaging materials, which will significantly reduce the strategic importance of these service offerings within the business.

Billerud CEO and president Christoph Michalski said: “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.

“Managed Packaging will now get an owner who wants to develop the business, to the benefit of employees and customers.”

Once complete, the divestment is expected to have a positive result of approximately Skr20m ($1.96m) for Billerud.

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This amount will be reported as an item affecting comparability in the third quarter of this financial year.

The companies also noted that the impact of this proposed deal on Billerud’s earnings before interest, taxes, depreciation, and amortisation, and net debt will be ‘immaterial’.

Last year, Managed Packaging recorded net sales of SKr770m, reported under Billerud’s ‘Solutions & Other’ segment.

According to the company, this unit has a large network of production partners, with a total of 143 employees deployed across Asia, Europe, and the US.

Mimir CEO Erik Bork said: “We are pleased to provide a divestiture solution to Billerud and we are excited to partner with the employees of Managed Packaging in developing its business as a standalone enterprise.

“Mimir Group’s expertise in carve-outs and business development on a global scale will become very useful in Managed Packaging’s European, Asian and North American trading environment.”