On Wednesday, packaging company DS Smith Plc announced that it plans to sell its plastics division to private-equity firm Olympus Partners for an enterprise value of €518 million.
DS Smith expects net cash proceeds after taxation, transaction adjustments and expenses of about £400 million (€465.71 million).
"The sale is expected to result in a substantial exceptional gain and be marginally EPS dilutive," the company announced.
In December, DS Smith announced that it was exploring options for its plastics division, including a potential sale. The business, contributing 6% of overall revenue, was hit by higher polymer prices and a lag in price recovery.
The plastics business of DS Smith includes flexible plastics, rigid plastics and foam products, and reported a profit before tax of £28 million (€32.60 million) for the 12-month period ended 31 October.