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Packaging And Design

Packager DS Smith To Sell Plastics Business For €518m

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.

Sales Options

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.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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