International Paper to Divest Five Box Plants, Seeks DS Smith Merger Approval

Deal News | Apr 14, 2025 | EIN

International Paper to Divest Five Box Plants, Seeks DS Smith Merger Approval

International Paper has announced plans to sell five of its corrugated box plants in Europe to PALM Group, as part of an agreement to comply with European Commission conditions following its acquisition of DS Smith. The plants, located in France, Portugal, and Spain, are expected to be transferred by the end of the second quarter. This divestiture fulfills regulatory obligations connected to the recent acquisition. International Paper Chairman and CEO, Andy Silvernail, expressed satisfaction in choosing PALM Group as the buyer, highlighting confidence in the new management. The DS Smith acquisition positions International Paper as a leader in sustainable packaging with significant synergies and accretive potential. Additionally, the company plans to shutter four U.S. facilities, impacting over 670 jobs, to streamline operations. These strategic moves align with International Paper's long-term growth and operational efficiency goals.

Sectors

  • Packaging and Containers
  • Mergers and Acquisitions

Geography

  • Europe – The sale of the five box plants is taking place across France, Portugal, and Spain.
  • United States – The closure of four facilities in the U.S. and International Paper's headquarters in the U.S. are significant geographic points in the article.

Industry

  • Packaging and Containers – The article discusses International Paper's divestment of box plants and its acquisition of DS Smith, dealing specifically with the production and sale of corrugated packaging solutions.
  • Mergers and Acquisitions – The article covers the acquisition of DS Smith by International Paper and the divestment of assets to comply with regulatory requirements.

Financials

  • $514 million – Expected synergies from International Paper's acquisition of DS Smith.

Participants

NameRoleTypeDescription
International PaperSellerCompanyA global leader in the packaging and paper industry, selling five European corrugated box plants.
PALM GroupBuyerCompanyA German company acquiring five box plants from International Paper.
DS SmithAcquired CompanyCompanyAcquired by International Paper, leading to strategic divestments for regulatory compliance.
Andy SilvernailChairman and CEOPersonChairman and CEO of International Paper, overseeing the divestment and expressing confidence in the new ownership.