DS Smith Concluded Sale of Plastics Division

SEATTLE (Scrap Monster): European packaging leader DS Smith confirmed that it has completed the previously announced sale of its plastics division Olympus Partners and its affiliate Liqui-Box Holdings. Last week, the consent decree issued by the U.S. Department of Justice (DOJ) was ratified by the U.S. federal court, thus clearing the final hurdle in the sale process.

DS Smith has received around £400 million net cash proceeds from the sale, after taxation, transaction adjustments and expenses. The money will be utilized towards reducing its financial gearing in line with the company’s earlier announced strategy of reducing its net debt to EBITDA ratio to less than 2 times in the medium-term.

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Commenting on the development, Miles Roberts, Group Chief Executive at DS Smith noted that the company is delighted to have completed the sale. The transaction is attractive for the company, both financially and strategically. Furthermore, it reinforces the company’s position as a leader in sustainable fibre-based packaging. Roberts thanked all the colleagues in the Plastics division for their hard work and wished them good luck with Olympus and Liqui-Box.

The sold Plastics division comprises of 26 sites across 12 different countries.