DS Smith to divest plastics division

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Photo by DS Smith Company says plastics division “an attractive asset with good growth prospect”

UK Packaging firm DS Smith has announced plans to sell its plastics division and is now “exploring opportunities”.

In its half-year financial statement 6 Dec, the company said following an initial review it had concluded that the business was “an attractive asset with good growth prospect”.

With £327m (€367m) sales in the fiscal year ended 30 April, the business accounts for 5% overall sales of the total group, according to Greg Dawson, director of corporate affairs.

The company launched a strategic review of the business in June through which it generated  “a significant amount of interest”, Dawson told PNE 7 Dec.

The business has been valued by the market at around £500m (€561m), but Dawson declined to comment.

The London-based company treated the division as “discontinued” in its half-year financial report, covering the six months to end of October, but according to Dawson that did not mean that a sales process had begun. 

“We are currently studying all the options and I can tell you that there have been a lot interested parties,” Dawson added.

DS Smith manufactures a range of flexible, rigid, foam and injection-moulded packaging solutions and claims to be the “world leader” in flexible liquid packaging and dispensing solutions for ‘bag-in-box’, with its Rapak brand. 

The company has 11 flexible packaging production plants and 15 rigid packaging manufacturing sites globally.

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