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DS Smith to launch sale of plastics packaging unit in November

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DS Smith to launch sale of plastics packaging unit in November

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By Arno Schuetze, Dasha Afanasieva and Ben Martin

FRANKFURT/LONDON (Reuters) - British packaging group DS Smith <SMDS.L> 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 <GS.N> is organising the deal. DS Smith declined to comment and Goldman Sachs did not immediately respond to a request for comment.

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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 <AMZN.O>.

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)

(Reporting by Arno Schuetze in Frankfurt, Dasha Afanasieva and Ben Martin in London; Editing by Susan Fenton)

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