Logson Group goes for majority stake in Durham Box, Billerud offloads Managed Packaging

UK – Independent corrugated packaging supplier The Logson Group has acquired a majority shareholding in packaging and PoS printer Durham Box.

Following the acquisition, Logson says that the existing management team will remain with the County Durham-based company, continuing to lead Durham Box as a standalone business within the Coalville, Leicestershire-headquartered Logson Group.

Durham Box managing director Dan Morris said: “I am incredibly excited to lead Durham Box into the next phase of its journey.

“Since being started by my parents in 1989 we have achieved great things as an independent family-run business.

“Joining forces with Logson, as our ideal partner, allows us to expand further and evolve, seamlessly complementing our existing operations while mutually benefitting both organizations.”

Durham Box will join the existing Logson Group’s brands of Board24, Boxes and Packaging, Cases24, Jardin Corrugated, Red Rose Packaging, Boxshop and The Cardboard Box Company.

David Richardson, Logson Group CEO, added: “Durham Box is a great addition to the Logson family, and we are pleased to have acquired the business allowing us to expand our reach into the Northeast of the country.

“Dan, and the team at Durham Box, have built a very strong business that has shown continued growth and development over many years. There is a strong correlation between the two organizations in terms of culture, drive, and approach to customers.

“With Dan continuing as a part owner and managing director at Durham Box, we are very excited to be able to share expertise and capabilities with the wider Logson Group.”

Logson Group’s brands operate from 20 locations across the UK, employing more than 1,200 staff and turning over £400 million a year.

Billerud offloads Managed Packaging

Meanwhile, Swedish pulp and paper manufacturer, 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.

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.

Christoph Michalski, president and CEO of Billerud said: “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.”

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 (US$1.95m), which will be reported as an item affecting comparability in the third quarter.

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