DS Smith Clears Regulatory Obstacle on Sale of its Plastics Division

SEATTLE (Scrap Monster): DS Smith announced that the U.S. Department of Justice (DOJ) has entered into a consent decree, which will clear the way for pending acquisition of its plastics division by Olympus Partners and its affiliate Liqui-Box Holdings.

The consent decree is now subject to ratification by the U.S. federal court. This is considered as the final hurdle in the sale process. After this, the transaction is expected to complete promptly.

DS Smith had reached an agreement with Stamford, Connecticut-based private equity firm Olympus Partners to sell its Plastics division for a sum of $585 million. The Plastics division comprises of various plastics operations including flexible plastics, rigid plastics and foam products. It covers 26 sites across 12 different countries, employing around 2,000 staff. The acquisition will further strengthen Olympus Partners’ flexible packaging portfolio.

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The net cash proceeds from the sale is estimated at around £400 million, after taxation, transaction adjustments and expenses. This will be used to reduce financial gearing in line with the company’s earlier announced strategy of reducing its net debt to EBITDA ratio to less than 2 times.

The sale represents a major step in DS Smith’s ongoing progress as a leader in sustainable packaging.