International Paper to spin off EMEA packaging business into separate public company
Operations at both new entities will include a combination of longtime IP mills and facilities and those acquired when IP merged DS Smith.
GLOBAL – International Paper (IP) has announced plans to separate its non-North American operations, creating two independent, publicly traded companies as it sharpens its regional focus and accelerates value creation.
Under the proposed structure, International Paper will retain its North American business, while its Europe, Middle East and Africa (EMEA) Packaging operations will be spun off into a standalone company.
Headquartered in Memphis, Tennessee, IP said the move will result in two leading sustainable packaging companies, each with dedicated management teams, tailored investment strategies, and distinct capital allocation priorities.
The separation follows IP’s merger with UK-based DS Smith early last year, a deal that significantly expanded its footprint in EMEA and strengthened its regional scale.
“The separation will create two leading sustainable packaging solutions companies, each with focused management teams and business models,” IP said in a statement.
The company added that combining IP and DS Smith had enabled it to build “two regional powerhouses” with strong customer relationships, recognized brands, and extensive manufacturing networks.
IP board chair and CEO Andy Silvernail said the two businesses operate in markedly different market environments and are at different stages of transformation.
“The next right step in our transformation journey is to create two independent, regionally focused companies,” he said, noting that the move would allow each business to achieve best-in-class performance through sharper strategic focus and targeted investment.
Post-separation, International Paper will concentrate exclusively on North America, serving a broad range of industries with sustainable packaging solutions designed to protect products, optimize supply chains, and support customer sustainability goals.
The company said the streamlined structure would enable it to compound earnings, grow cash flows, and deliver improved shareholder returns, while accelerating investment in organic growth, productivity improvements, and disciplined acquisitions.
Silvernail will remain board chair and CEO of International Paper, with Lance Loeffler continuing as chief financial officer and Tom Hamic as president of Packaging Solutions North America.
The newly formed EMEA Packaging company will operate in 30 countries and will comprise IP’s current Packaging Solutions EMEA business, operating as DS Smith, including both legacy DS Smith and IP assets.
The standalone business will focus on innovative, sustainable packaging tailored to evolving regional market demands.
Tim Nicholls, currently president of DS Smith, is expected to become CEO of the new company, while David Robbie, a former DS Smith board member, is slated to serve as board chair. IP said it intends to retain a meaningful ownership stake following the spin-off.
The transaction is expected to be structured as a shareholder spin-off and could take 12 to 15 months to complete. The new EMEA Packaging company is expected to be listed on both the London Stock Exchange and the New York Stock Exchange.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
