International Paper Co. plans to break up and spin off its European packaging operations. The Memphis-based packaging company will reportedly create two independent, publicly traded companies.
The move comes roughly a year after IP completed its $9.9 bn acquisition of DS Smith — a deal that created a sustainable packaging leader focused on North America and Europe.
IP said the new companies will comprise its current business in North America, including both legacy International Paper and DS Smith assets, and an EMEA packaging business, again comprising legacy DS Smith and IP assets.
“We have learned a lot about how to create value in each region,” said Andy Silvernail, CEO, IP. “Taking this swift, decisive action now will enable both businesses to reach best-in-class performance and maximize long-term value creation.”
Shares in International Paper closed at $41.49 in New York trading on Wednesday, giving the company a market value of about $22 bn. The stock, which has fallen almost 30% in the past year, rose as much as 11% in premarket trading Thursday.
International Paper last Fall cut its outlook for 2025 and 2027, as both US and European markets remained weak. US box industry shipments had lulled amid trade uncertainty and weak consumer sentiment.
The company also said last year it would sell its global cellulose fibers business, which makes pulp for household products, to focus more on sustainable packaging.
