Packager DS Smith selling plastics unit to private equity firm Olympus

Packaging supplier DS Smith Plc has reached an agreement to sell its plastics division to private equity firm Olympus Partners for US$585 million.

Beginning in December 2018, DS Smith said it was exploring options for its plastics division – which has flexible plastics, rigid plastics, and foam products – including a potential sale.

The business, which contributes approximately six per cent of DS Smith’s overall revenue, was hit by higher polymer prices and a lag in price recovery.

Headquartered in London, DS Smith is a packaging supplier to Amazon. The company will retain its paper packaging operations, including Europac, a Spanish maker of corrugated packaging that DS Smith purchased in January.

Olympus Partners is based in Stamford, Conn. Its other holdings include protective packaging film maker Pregis.