Jon Moulton splashes out £40m on UK office supplies giant

Fast mover: Jon Moulton's Better Capital snapped up the business' UK and Irish division

11 April 2012

Packaging group DS Smith today sold its office supplies business Spicers to a Spanish paper giant for £200 million.

Jon Moulton's private-equity vehicle Better Capital then immediately spent £40 million snapping up Spicers' UK and Irish division from Spain's Unipapel.

Last year, the whole Spicers business made a profit of £24 million on revenues of £715 million.

Miles Roberts, chief executive of DS Smith, said the sale "represented a key strategic step" in the group's streamlining . "Following the proposed transaction, our aim is to continue to focus on and build our European packaging business," Roberts added.

In the City, analysts approved of the deal. Hector Forsythe, of Oriel Securities, said: "It is definitely a good move. They're clearly disposing off an asset they have signalled doesn't provide anything to the rest of the group."

Shares in DS Smith rose almost 2%, or 2.7p, to 270.1p.

The group used Lazard as an advisor on the deal, while Better hired Numis Securities.