Edition:
United Kingdom

DS Smith To Sell Plastics Division For $585 Mln


Wednesday, 6 Mar 2019 

March 6 (Reuters) - DS Smith PLC ::SALE OF PLASTICS DIVISION AND TRADING UPDATE.PROPOSED DEAL FOR $585 MILLION.EXPECT NET CASH PROCEEDS AFTER TAXATION, TRANSACTION ADJUSTMENTS AND EXPENSES OF APPROXIMATELY £400MILLION..REACHED AGREEMENT TO SELL PLASTICS DIVISION TO OLYMPUS PARTNERS.US BUSINESS CONTINUES TO PERFORM WELL WITH STRONG MARGINS AND RETURNS AHEAD OF ACQUISITION CASE.SALE IS EXPECTED TO RESULT IN A SUBSTANTIAL EXCEPTIONAL GAIN AND BE MARGINALLY EPS DILUTIVE.IN PERIOD SINCE 1 NOVEMBER 2018, TRADING HAS CONTINUED TO BE STRONG, IN LINE WITH OUR EXPECTATIONS.CHRISTMAS PERIOD ESPECIALLY BUSY FOR E-COMMERCE FOCUSSED CUSTOMERS WITH SECTOR LEADING OFFERING SUPPORTING CUSTOMERS.IN US BUSINESS, GROUP MARGINS ARE EXPECTED TO PROGRESS FURTHER IN SECOND HALF OF FINANCIAL YEAR.CASH PROCEEDS EXPECTED TO BE USED TO REDUCE FINANCIAL GEARING OF CO, IN LINE WITH MEDIUM-TERM TARGET OF NET DEBT/EBITDA AT OR BELOW 2.0X.