DS Smith Paper’s specialist producer of filing and educational papers, Higher Kings Mill in Devon, has been purchased by Asia File Corporation Berhad. The international company, based in Malaysia, is engaged in the manufacturing and marketing of filing and stationery products. The sale, for an enterprise value of £4.6 million, payable in cash, was completed on 30 September 2011. Once the sale has been finalised, all Higher Kings’ employees will transfer automatically to Asia File’s UK subsidiary.
This transaction marks a further development in the execution of DS Smith Plc’s strategy to focus on recycled packaging for consumer goods and to reduce paper manufacture that does not directly support the packaging business.
DS Smith Paper’s Managing Director, Chris Rosser, said: “This is a ‘win win’ situation. The employees of Higher Kings will become part of an expanding company specialising in the mill’s products and markets, while DS Smith Paper sharpens its focus on the packaging industry as a key part of DS Smith’s strategy to deliver higher returns on capital with reduced cyclicality.”