DS Smith Update

[daveh]

Smith (DS) Plc have provided an update on the sale of the plastics division (its been agreed) and on recent trading ( in line with expectations) here:
www.investegate.co.uk/article.aspx?id=2 ... 9541R&fe=1

DS Smith is pleased to announce it has reached agreement to sell the Plastics division to Olympus Partners for an enterprise value of $585 million, (approximately £450 million). This represents a multiple of 9.9x EBITDA based on the past 12 months to 31 October 2018. The transaction is subject to customary closing conditions including regulatory approvals, with completion expected to take place in the second half of this calendar year. We expect net cash proceeds after taxation, transaction adjustments and expenses of approximately £400million.

Proceeds to be used to pay down debt.

Trading update
In the period since 1 November 2018, trading has continued to be strong, in line with our expectations.

Update on Europac
The acquisition of Europac completed on 22 January 2019. We are delighted to welcome our new colleagues to the business and are very pleased with the initial progress on integration and the customer reaction so far.

[fisher]

Thanks for posting this. A positive update. I hold these as one of the largest holdings in my HYP having been in there for over a decade now.