DS Smith announced it has reached agreement to sell its Plastics division to Olympus Partners for an enterprise value of $585 million, (approximately €519 million). The transaction is subject to customary closing conditions including regulatory approvals, with completion expected to take place in the second half of this calendar year.
The Plastics division comprises the plastics operations of DS Smith, including flexible plastics, rigid plastics and foam products. Gross assets of the business as at 31 October 2018 were £223 million (€262 million) and profit before tax for the 12 month period to 31 October 2018 was £28 million (€33 million).
This sale is intended to accelerate DS Smith’s programme of deleveraging, alongside organic cashflow.