Flexible packaging producer Liqui-Box, a portfolio company of Olympus Partners, has completed the acquisition of DS Smith Plastics from DS Smith plc in a transaction valued at approximately £400 million.
The transaction will see DS Smith’s full plastic packaging division acquired by Liqui-Box, encompassing both rigid and flexible packaging operations.
DS Smith Plastic’s flexible packaging and Worldwide Dispensers businesses will be absorbed into the Liqui-Box brand, and Liqui-Box claims that the addition of the two units will significantly expand its solutions for high-growth markets such as coffee, tea, water and aseptic packaging.
Meanwhile, DS Smith Plastics’s existing rigid packaging businesses for extruded products, injection molded products and foam products will be split into three newly branded and independently operated businesses, which will operate respectively as Corplex, DW Reusables and Engineered Foam Products.
The combined companies will operate 35 manufacturing facilities worldwide, and possess a global workforce of nearly 3,000 employees.
Ken Swanson, CEO of Liqui-Box said: “We’re excited to complete this transformational acquisition and welcome the DS Smith Plastics employees to our team.
“The new structure and brand identity of these businesses further supports our strategy and commitment to lead the way with sustainable packaging solutions.
“Our best-in-class converting and molding equipment, coupled with further advancements in materials and design will be a big benefit to our customers. We’re excited to unlock additional value through an expanded range of film, bag and dispensing fitments, our best-in-class filler solutions and an expanded global reach.”
DS Smith claims that the sale of the plastics unit will allow the company to focus on its fibre-based packaging operations.
Miles Roberts, group chief executive at DS Smith added: “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.
“I would like to thank our Plastics colleagues for all their hard work and wish them all the best with Olympus and Liqui-Box.”
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