UK recycled packaging firm, DS Smith Plc, has confirmed the £200 million sale of Spicers, its office supplies business unit. The company will now focus on its core packaging business, and will use the money gained from the transaction acquire rival European firm. Of particular interest are regional players in Poland, the Ukraine and the Czech Republic.

DS Smith is one of the largest recycled packaging companies in Europe, with clients including P&G, Reckitt Benckiser and Cadbury. There is an increasing trend towards the use of sustainable packaging, with many multi-nationals striving to achieve Corporate Social Responsibility targets.

Spain's Unipapel SA bought Spicers to focus on expanding its continental European business, but the company has confirmed it will sell the UK and Ireland operations to Better Capital Ltd (a private equity company which actively seeks complicated company sales), for £32 million. It is understood that in 2010, Spicers contributed over a quarter of DS Smith's revenue, at around £715 million.

Following news of the sale DS Smith's shares increased by 1.3%, indicating a company valuation of £1.2 billion.Miles Roberts, CEO of DS Smith commented: "We do see a number of acquisition opportunities as well as some [opportunity for] green-field development."