The deal was completed on 31 October and the purchase price corresponds to an equity value of around SEK 30m (£2.58m).

The transaction results in a capital loss of around SEK 120m that will have a negative impact on BillerudKorsnäs’ 2021 fourth quarter results.

BillerudKorsnäs president and CEO Christoph Michalski said: “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.”

BillerudKorsnäs was founded in 2012 following a merger of Billerud and Korsnäs. The Beetham mill, which was acquired by Billerud in 2004, produces paper for medical equipment, food packaging, and industrial applications.

During the last twelve months the mill recorded net sales of around SEK 480m and an operating profit of around SEK 13m.

The mill employs around 140 staff and has an annual production capacity of 45,000 tonnes of kraft paper, which is used for the packaging of medical devices, quick service food products, and other types of industrial applications.

Mill CEO Steven Blacow said: “I am extremely excited by this development. With Inspirit’s support, the Beetham mill now has the opportunity to further develop in the medical field, which has not been a strategic priority for the former owners.

“The mill has a strong record of product innovation and operational efficiency, and I look forward to harnessing the team’s outstanding know-how and customer focus to create a successful independent business.”

The new company will be rebranded as Pelta Medical Papers; the word Pelta being ancient Greek for a lightweight shield.

Inspirit Capital founding partner Will Stamp said the Beetham mill is “one of the global leaders” in the manufacture and supply of sterile barrier papers for medical devices and grease barrier papers for the quick service market.

“The business is very well positioned to continue its expansion into the healthcare space, which we see as the long-term driver of growth,” he added.

“The workforce at Beetham has tremendous experience and competence, and we are looking forward to working with Steven and the wider team on supporting the future development of the business.”

As part of the transaction, the business will benefit from a £15m funding line with Arbuthnot bank.