(Alliance News) - Packaging group DS Smith PLC said Thursday it has completed the sale of its Plastics division to private equity firm Olympus Partners and its affiliate Liqui-Box Holdings Inc.
The GBP450 million takeover deal was first announced in March, and in May the UK Competition & Markets Authority said it would probe the proposed acquisition.
In mid-July, the UK regulator had said the initial phase of its investigation found that the acquisition would create "insufficient competition", given that Liqui-Box and DS Smith are two of only four companies offering specialist Bag-in-Box packaging to food and drink suppliers in the UK.
However, in September the CMA cleared the acquisition, after Liqui-Box offered undertakings to the regulator, including the divestment of its Bag-in-Box business.
DS Smith said last Thursday it expects to receive net proceeds of GBP400 million after taxes, transaction adjustments and exposes from the deal.
"We are delighted to have completed the sale of our Plastics division. The transaction is attractive, both financially and strategically, for DS Smith as we reinforce our position as a leader in sustainable fibre-based packaging," said DS Smith Chief Executive Miles Roberts.
The stock was trading 3.0% lower at 336.00 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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