International Paper considers sale of EMEA packaging business

International Paper has confirmed it is discussing a potential sale of its Europe, Middle East, and Africa (EMEA) packaging business. This development provides an alternative to the company’s existing plan to spin off the regional operations.

The company is pursuing both a sale and a spinoff in parallel. The proposed spinoff would result in an independent entity named DS Smith plc, which would combine legacy International Paper and DS Smith operations in the EMEA region. This new entity is expected to be listed on the London Stock Exchange and feature a Level II American depositary receipt program on the New York Stock Exchange.

While International Paper did not officially name bidders or a price, reports indicate that private equity firms Lone Star and Atlas Holdings have explored separate bids that could value the business at less than US$6 billion. Following the announcement, International Paper shares rose 6.3 percent to close at US$34.05.

A capital markets day for the proposed DS Smith plc is scheduled for November 3, featuring future leadership including Chief Executive Tim Nicholls and Chief Financial Officer Vincent Bonnot.