Henry Cooke is involved in segments where we are looking to grow our business, and fits in with our strategic aims for the future, said Billeruds chief financial officer, Nils Lindholm.

He hoped the deal, which is on a debt-free basis and at due diligence stage, would be completed before the end of the year.

Lindholm would not rule out further acquisitions of profitable businesses that fitted with the Swedish packaging paper firms strategy.

Cumbria-based Henry Cooke is a wholly owned subsidiary of South African industrial brand management group Barloworld.

Barloworlds director of corporate communications, Mark Drewell, said the sale of Henry Cooke formed part of the divestment of its papermaking operations, to be completed with this deal.

The divestment started in January 1999 with the sale of the Oakenholt mill to Italian tissue paper manufacturer Cartoinvest (PrintWeek, 22 January 1999).

Henry Cooke produces packaging paper for medical and flexible packaging usage at its plant in Milnthorpe.

The site has an annual capacity of 45,000 tonnes, employs 180 staff and has sales of around 30m.

Billerud was formed in November 2000 through a merger of AssiDomns Skrblacka and Karlsborg paper mills and Stora Ensos Gruvn mill.

The group has annual sales of 540m and employs 2,400 staff.

Story by Andy Scott