International Paper Begins Exclusive Talks to Sell European Plants to PALM
Deal News | Apr 14, 2025 | PR Newswire Cision International Paper
International Paper has commenced exclusive negotiations with Germany's PALM Group regarding the sale of five of its European corrugated box plants. This divestment is part of a regulatory commitment following International Paper’s acquisition of DS Smith Plc. The negotiations involve three plants in France, one in Portugal, and another in Spain. These moves satisfy the European Commission's conditions necessary for the acquisition of DS Smith. International Paper aims to finalize the sale by the end of Q2 2025, pending the conclusion of French employee consultations and the approval by European regulators. Founded in Memphis, International Paper operates globally, offering sustainable packaging solutions. PALM, headquartered in Germany, is a noted producer in the European paper industry. The parties have engaged BofA Securities and Skadden, Arps, Slate, Meagher & Flom LLP as financial and legal advisors, respectively, for this deal.
Sectors
- Packaging
- Manufacturing
- Mergers and Acquisitions (M&A)
Geography
- Europe – The article involves the sale of plants located in France, Portugal, and Spain, and addresses European regulatory commitments.
- Germany – PALM Group, the buyer, is headquartered in Germany.
- United States – International Paper, the selling company, is headquartered in Memphis, Tennessee.
Industry
- Packaging – The article discusses the divestment of corrugated box plants, a core part of the packaging industry.
- Manufacturing – Both International Paper and PALM are involved in the manufacturing of paper and corrugated products, positioning them within this sector.
- Mergers and Acquisitions (M&A) – The article focuses on a corporate divestiture as part of a regulatory agreement following an acquisition.
Financials
- $18.6 billion – International Paper's net sales for 2024.
- €2 billion – PALM's turnover achieved in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| International Paper | Selling Company | Company | A global leader in sustainable packaging and paper products, headquartered in Memphis, TN. |
| PALM Group | Bidding Company/Buyer | Company | A family-owned German company, a leading producer of containerboard, graphic paper, and corrugated packaging. |
| European Commission | Regulatory Body | Government | The executive arm of the European Union responsible for proposing legislation and implementing decisions. |
| BofA Securities | Financial Advisor | Company | Acting as the exclusive financial advisor to International Paper. |
| Skadden, Arps, Slate, Meagher & Flom LLP | Legal Advisor | Company | Providing legal advisory services to International Paper. |