Box maker DS Smith has agreed to sell their plastic division to private equity firm, Olympus Partners for £450m.
The FTSE-100 listed company will make £400m in net proceeds from the sale, as the company are to focus on sustainable packaging.
Shares were 3% after the announcement of the deal.
Miles Roberts, group chief executive of DS Smith said, “The transaction is attractive both financially and strategically for DS Smith as, together with the acquisition of Europac, we reinforce our position as a leader in sustainable packaging with a clear focus on our fibre-based business.”
In January the company completed the acquisition of Spanish rival, Europac, they added 2,300 staff from Europac to their current workforce of 28,500 across 37 countries.