October 19, 2018 / 12:56 PM / a month ago

DS Smith to launch sale of plastics packaging unit in November

FRANKFURT/LONDON, Oct 19 (Reuters) - 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 organising 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 cardboard, 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).

DS Smith's Chief Executive Miles Roberts called this month for more clarity on Britain's exit from the European Union. ($1 = 0.7680 pounds) ($1 = 0.8724 euros) (Reporting by Arno Schuetze in Frankfurt, Dasha Afanasieva and Ben Martin in London Editing by Susan Fenton)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below