Olympus Partners to buy DS Smith's plastics unit in $585M deal

摘要

Stamford,based private equity firm Olympus Partners agreed to acquire the plastics business of the U.K.'s DS Smith PLC for an enterprise value of $585 million,representing a multiple of 9.9x EBITDA based on the 12 months to Oct.31,2018.The deal is expected to close in the second half of 2019,subject to regulatory approvals and other conditions,according to a release.The division comprises the plastics operations of DS Smith,including flexible plastics,rigid plastics and foam products.The business’gross assets totaled ￡223 million as at Oct.31,2018.The business,contributing 6 percent of overall revenue,was hit by higher polymer prices and a lag in price recovery.The Plastics division comprises the plastics operations of DS Smith,including flexible plastics,rigid plastics and foam products.Gross assets of the business as at 31 October 2018 were ￡223 million and profit before tax for the 12 month period to 31 October 2018 was ￡28 million.This sale represents an important step in DS Smith's continued progress as a leader in sustainable packaging and accelerates the programme of deleveraging,alongside organic cashflow.The cash proceeds are expected to be used to reduce the financial gearing of DS Smith pic,in line with our medium-term target of net debt/EBITDA at or below 2.Ox.The sale is expected to result in a substantial exceptional gain and be marginally EPS dilutive.