International Paper weighs sale of EMEA packaging business as bidders emerge

EMEA – International Paper has confirmed it is discussing a possible sale of its Europe, Middle East and Africa packaging business with potential bidders, adding a second route for separating the operations as it continues preparations for a spinoff.

The packaging producer, listed in New York and London, confirmed the discussions in a 15 October 2026 statement responding to press speculation and movements in its share price.

It said the approaches were unsolicited and negotiations remained at an early stage, with no certainty that a sale would be agreed or completed. 

US shares closed at US$34.05, up 6.3 percent from the previous close.

Private Equity Firms Explore Bids Below US$6 Billion

The Financial Times reported that private equity firms Lone Star and Atlas Holdings were exploring separate bids potentially valuing the business below US$6 billion, according to Reuters. 

International Paper’s announcement did not identify bidders or disclose a proposed price. Lone Star declined to comment to Reuters, while Atlas did not respond to its request.

Spinoff Would List DS Smith on London Exchange

The company announced its separation plan on 29 January. On 14 October, it confirmed that the proposed spinoff would involve a London Stock Exchange listing and a Level II American depositary receipt programme listed on the New York Stock Exchange. 

Under the planned regional split, the EMEA company would combine legacy International Paper and DS Smith operations in the region. 

The North American business would continue under the International Paper name and also include assets from both companies. International Paper acquired DS Smith in 2025.

Capital Markets Day Scheduled for November

The proposed independent EMEA company would be named DS Smith plc. 

Its capital markets day is scheduled for 3 November, from 1pm to 5pm GMT, with future chief executive Tim Nicholls and future chief financial officer Vincent Bonnot hosting alongside other business leaders. 

International Paper said it was pursuing the spinoff and evaluating a sale in parallel, while leaving the ultimate timing and structure of the separation uncertain. 

Running both processes simultaneously gives the company flexibility to choose whichever route delivers better value for shareholders, though it also extends uncertainty for employees and customers across the EMEA packaging operations until a decision is reached. 

The EMEA business serves corrugated packaging markets across Europe, the Middle East and Africa, where demand conditions vary considerably between mature western European markets and faster-growing regions.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE