International Paper to acquire London-based company in $9.9B deal
International Paper announced Tuesday that it will acquire Londonbased DS Smith, a move the companies say will create a “truly global leader in sustainable packaging solutions.”
The stock value of the transaction is about $9.9 billion, according to a news release. The deal is expected to close by the fourth quarter of 2024.
“Combining with DS Smith is a logical next step in IP’S strategy to drive profitable growth by strengthening our global packaging business,” said Mark S. Sutton, chairman and CEO of IP, in a news release. “DS Smith is a leader in packaging solutions with an extensive reach across Europe, which complements IP’S capabilities and will accelerate growth through innovation and sustainability. We are confident this combination will drive significant value for our employees, customers, and shareholders.”
DS Smith is considered a leading provider of sustainable fiber-based packaging worldwide. It operates in 34 countries and employs around 30,000 people, while Memphis-based International Paper has about 40,000 employees around the world.
“The combination with IP is an attractive opportunity to create a truly international sustainable packaging solutions leader that is well positioned in attractive and growing markets across Europe and North America. It combines two focused and complementary businesses,” DS Smith CEO Miles Roberts said in a news release.
“DS Smith has grown significantly through a dedication to customers, focus on innovation, quality of packaging and high levels of service. In a dynamic sustainable packaging landscape, the combination will enhance our global proposition to customers, create opportunities for colleagues and drive value for shareholders who can remain fully invested in such an exciting business.”
Ceo-elect of IP Andrew K. Silvernail echoed Roberts’ and Sutton’s comments.
“Bringing together the capabilities and expertise of both companies will create a winning position in renewable packaging across Europe, while also enhancing IP’S North American business,” he said in a news release. “I firmly believe this strategic combination offers a unique and highly compelling opportunity to create tremendous shareholder value. I am also committed to working with the teams to deliver the expected synergies, along with the ongoing profit improvement initiatives across the IP portfolio.”