International Paper moves to divest five European plants

Following its acquisition of British packaging business DS Smith, International Paper is in talks to divest five of its corrugated box manufacturing plants in Europe, in line with regulations set by the European Commission.

According to a press note, the proposed buyer is Palm, a German, family-owned manufacturer of newsprint and corrugated base paper. The planned divestment includes three facilities in France and one each in Portugal and Spain. A definitive share purchase agreement is expected to be signed after the required French works council procedures, with completion anticipated by the end of the second quarter of the 2025 financial year.

“Finding the right buyer for these five facilities has been a top priority for our team since the completion of the acquisition of DS Smith, and I'm pleased that we have found one in Palm,” said Andy Silvernail, chairman and CEO of International Paper. “We are grateful for the many contributions the team members at these five plants have made to the company and know they will continue to be successful and deliver value with their new owners.”

The move follows International Paper’s completion of its all-share acquisition of UK-based DS Smith on 31 January 2025. PrintWeek readers will recall that under that agreement, DS Smith shareholders received 0.1285 shares of International Paper common stock for each DS Smith share, resulting in the issue of approximately 179.8-million new shares.

The acquisition, first agreed in April 2024, was implemented through a court-sanctioned scheme of arrangement under United Kingdom law. While the European Commission gave Phase I clearance in January 2025, it required International Paper to divest specific assets to address competition concerns.

The deal strengthens International Paper’s position in the sustainable packaging market and expands its footprint across Europe. The company’s 2024 revenues stood at USD 18.6-billion, with DS Smith reporting approximately GBP 8.43-billion.