DS Smith to Sell Higher Kings Mill in U.K.
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DS Smith Plc, U.K., reports that its DS Smith paper business has agreed to sell its Higher Kings Mill paper mill in the U.K. to Asia File Corporation Berhad, for an enterprise value of £4.6 million payable in cash on completion. As at April 30, the net assets of the Higher Kings Mill business (on a cash and debt free basis) was £3.8 million and gross assets were £8.0 million. The sale is expected to be completed on September 30. The mill produces some 34,000 metric tpy of filing and educational papers.
The transaction is part of DS Smith's strategic focus on recycled packaging for consumer goods and the reduction of paper capacity that does not directly support the packaging business. The decision to sell Higher Kings Mill follows the company's announcement this past June that it will close its Hollins paper mill, which produces 95,000 metric tpy.
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