International Paper Divests Five European Plants to Meet Regulatory Requirements Post-DS Smith Acquisition

International Paper Divests European Plants

International Paper, a globally recognized leader in sustainable packaging solutions, has finalized the sale of five of its corrugated box production facilities located in Europe. This strategic decision was taken to fulfill regulatory requirements imposed by the European Commission as part of its acquisition of DS Smith Plc. The deal signifies a crucial step for International Paper as it moves forward in its commitment to compliance and operational growth in the packaging industry.

Details of the Divestiture

The divestiture involves the transfer of three plants in Normandy, France, which include one box plant in Saint-Amand, another in Mortagne, and a sheet plant in Cabourg. Additionally, the sale covers a box plant in Ovar, Portugal, and another in Bilbao, Spain. By divesting these five facilities, International Paper has addressed the stipulations outlined by the European Commission on January 24, 2025, effectively meeting all obligations associated with the purchase of DS Smith Plc.

Strategic Importance for International Paper

The completion of this divestiture underscores International Paper's dedication to maintaining compliance with regulatory frameworks while positioning itself to capitalize on growth opportunities in the North American and EMEA regions. With this move, the company clears a significant hurdle in its merger process, paving the way for future operational enhancements and expansions.

International Paper, based in Memphis, Tennessee, operates over 30 countries and is committed to providing sustainable packaging solutions. In 2024, the company reported net sales of $18.6 billion. With the acquisition of DS Smith, it aims to strengthen its market presence significantly.

About PALM Group

The buyer of the divested plants, PALM Group, is a prominent family-owned business headquartered in Aalen, Germany. Known for its production of containerboard, graphic paper, and corrugated packaging, PALM operates five paper mills and now 33 corrugated box plants across Europe. With a workforce of 4,200 employees, the company achieved a turnover of €2 billion in 2024 and continues to focus on providing high product quality, reliable service, and sustainable production processes. This acquisition not only enhances PALM's operational capacity but also strengthens its position within the European packaging market.

Looking Forward

As International Paper moves ahead post-divestiture, the focus remains on integrating DS Smith's operations and leveraging synergies that will enhance its service offerings and market reach. The sustainable packaging landscape continues to evolve, and International Paper is strategically positioned to lead through innovation and efficiency. This divestment marks just one part of a broader strategic vision aimed at sustainable growth and industry leadership.

In conclusion, the completion of this sale not only fulfills significant regulatory commitments but also empowers both International Paper and PALM Group to pursue their respective growth trajectories within the competitive packaging industry landscape. With ongoing developments in packaging solutions, companies that adapt and innovate will thrive in this ever-evolving market.