Packaging giant DS Smith PLC (LON:SMDS) has strengthened its finances with the sale of its plastics division to private equity group Olympus for US$585mln.
The division makes flexible, rigid plastics and foam and has gross assets of £223mln with profits of £28mln in its last financial year.
READ: DS Smith exploring sale of Plastics division as it posts jump in first-half profit with more boxes sold at higher prices
Smith’s focus on plastics increasingly is sustainable products. Net cash proceeds will be £400mln.
The packaging group also reported good trading since November with demand for cardboard boxes from online vendors especially buoyant over Christmas.
“While macroeconomic conditions remain uncertain, we are confident of continued strong demand for our innovative and high-quality sustainable packaging and the resilience of our FMCG-focussed customer base,” said Miles Roberts, chief executive.