DS Smith to launch sale of plastics packaging unit in November

By Arno Schuetze, Dasha Afanasieva and Ben Martin

FRANKFURT/LONDON, Oct (Shenzhen: 000069.SZ - news) 19 (Reuters) - British packaging group DS Smith (Frankfurt: 877238 - news) is expected to launch the sale of its plastic packaging division in November, three sources familiar with the matter said, in a deal that could be worth around $800 million.

Two of the sources said the division has earnings before interest, tax, depreciation and amortisation (EBITDA) of $80 million. The sources said financial sponsors were looking at the asset and that they are likely to receive information memorandums on the asset next month.

Goldman Sachs (NYSE: GS-PB - news) is organising the deal.

DS Smith declined to comment and Goldman Sachs did not immediately respond to a request for comment.

DS Smith has a market capitalisation of 5.57 billion pounds ($7.3 billion), according to Refinitiv data. One of the sources said the sale of the plastics packaging division could fetch around $800 million.

The FTSE-100 company supplies corrugated cardboard, recycled paper and plastic packaging to firms including supplies to companies including Amazon.com Inc.

In June it said it was acquiring Spanish rival Papeles y Cartones de Europa for an implied enterprise value of 1.9 billion euros ($2.2 billion).

DS Smith's Chief Executive Miles Roberts called this month for more clarity on Britain's exit from the European Union. ($1 = 0.7680 pounds) ($1 = 0.8724 euros) (Reporting by Arno Schuetze in Frankfurt, Dasha Afanasieva and Ben Martin in London Editing by Susan Fenton)