The plastics division comprises product manufacturing lines in flexible plastics, rigid plastics and foam products, including food and beverage, pharmaceutical and transit packaging products.
The company described the sale as an important step in its ‘continued progress’ as a leader in sustainable packaging – “with a clear focus on fibre-based products”.
DS Smith has also recently completed the acquisition of its competitor business Europac – the Spanish headquartered cardboard and paper packaging products company (see letsrecycle.com story).
In a financial update issued alongside the announcement today, DS Smith said that since 1 November 2018, its trading has ‘continued to be strong, in line with expectations’.
Trading
The company said it has continued to see good corrugated box volume growth, particularly in light of a busy Christmas period for the company’s e-commerce customers.
Miles Roberts, the company’s group chief executive, said: “I am delighted to confirm that we have reached an agreement for the sale of our Plastics division. The transaction is attractive both financially and strategically for DS Smith as, together with the acquisition of Europac, we reinforce our position as a leader in sustainable packaging with a clear focus on our fibre-based business. My colleagues in the Plastics division have worked hard to build the business into the success that it is today, and that quality has been recognised by Olympus Partners.
“We are pleased with the performance of the business during the second half of the year. While macroeconomic conditions remain uncertain, we are confident of continued strong demand for our innovative and high-quality sustainable packaging and the resilience of our FMCG-focussed customer-base. At the same time, the sale announced today will further strengthen our robust balance sheet and the Board continues to view the prospects for the business with confidence.”
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