International Paper to spin off EMEA operations into separate public company

International Paper (NYSE: IP) announced plans to separate into two independent publicly traded companies, creating distinct North American and European packaging businesses.

The Memphis-based company will retain its North American operations, including assets from both legacy International Paper and DS Smith. The European, Middle East and Africa (EMEA) packaging business will become a standalone public company comprising DS Smith and International Paper assets in those regions.

The separation is structured as a spin-off of the EMEA packaging business to shareholders, with International Paper retaining a meaningful ownership stake in the new company. The transaction's completion is expected within 12-15 months, subject to board approval, SEC registration statement effectiveness, and U.K. Financial Conduct Authority prospectus approval.

Andy Silvernail will continue as chairman and CEO of International Paper's North American operations. Tim Nicholls, currently executive vice president and president of DS Smith, will serve as CEO of the new EMEA company. David Robbie is expected to chair the EMEA company's board of directors.

The new EMEA company will operate in 30 countries and be listed on both the London Stock Exchange and New York Stock Exchange. Whether the transaction will be tax-free to U.S. shareholders depends on final terms and the amount of shares International Paper retains.

International Paper acquired DS Smith in 2024, combining operations across both regions. The company stated the separation will allow each business to focus on region-specific strategies and market conditions.

Jefferies served as lead financial advisor, with Evercore also advising International Paper. Wachtell, Lipton, Rosen & Katz provided legal counsel for the transaction.

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