DS Smith to launch sale of plastics packaging unit in November

Monday, October 22, 2018 2:00 pm

DS Smith to launch sale of plastics packaging unit in November | DS Smith, sale, divestment,

FRANKFURT/LONDON (From news reports) - British packaging group DS Smith is expected to launch the sale of its plastic packaging division in November, three sources familiar with the matter said, in a deal that could be worth around $800 million.

Two of the sources said the division has earnings before interest, tax, depreciation and amortisation (EBITDA) of $80 million. The sources said financial sponsors were looking at the asset and that they are likely to receive information memorandums on the asset next month.

Goldman Sachs is organizing the deal.

DS Smith declined to comment and Goldman Sachs did not immediately respond to a request for comment.

DS Smith has a market capitalisation of 5.57 billion pounds ($7.3 billion), according to Refinitiv data. One of the sources said the sale of the plastics packaging division could fetch around $800 million.

The FTSE-100 company supplies corrugated board, recycled paper and plastic packaging to firms including supplies to companies including Amazon.com Inc.

In June it said it was acquiring Spanish rival Papeles y Cartones de Europa for an implied enterprise value of 1.9 billion euros ($2.2 billion).