Linpac, the UK packaging group, has sold its oldest subsidiary, reducing the debt incurred when Montagu Private Equity bought Linpac for £860m (€1.3bn) last year and allowing Deutsche Bank, which provided the debt financing for the buy-out, to syndicate the remainder.

Linpac, advised by Deloitte & Touche Corporate Finance, has sold Linpac Containers to DS Smith, the international packaging group, for £170m cash.