BillerudKorsnäs divests the Beetham mill

Transaction results in a capital loss

2754
Billerudkorsnas
Billerudkorsnas divests Beetham Mill photo papermart

BillerudKorsnäs has recently agreed with the British investment firm Inspirit regarding the divestment of the Beetham mill. The transaction is completed today. The purchase price corresponds to an equity value of around SEK 30 million (approx. INC 24 crores).

“The strategic importance of the Beetham mill for the rest of the group has been reduced since the investments in machine glazed (MG) paper production at Skärblacka a couple of years ago. With Inspirit, the Beetham mill gets an owner with the intention and resources to develop the business further,” comments Christoph Michalski, president and chief executive officer.

The transaction results in a capital loss of around SEK 120 million (approx. INC 99 crores) that will have a negative impact on BillerudKorsnäs’ 2021 fourth-quarter results.

The Beetham mill, acquired by Billerud in 2004, produces paper for medical equipment, food packaging and industrial applications. During the last twelve months, Beetham had net sales of around SEK 480 million (approx. INC 396 crores) and an operating profit of around SEK 13 million (approx. INC 10 crores). The mill has an annual production capacity of 45000 tonnes of kraft paper and around 140 employees.

LEAVE A REPLY

Please enter your comment!
Please enter your name here