International Paper has announced plans to separate its operations into two independent, publicly traded companies, a move aimed at sharpening regional focus and accelerating long-term value creation across North America and EMEA.
Under the proposed structure, International Paper will retain its North American packaging business, combining legacy IP and DS Smith assets in the region. A second standalone company will be formed around the group’s EMEA packaging operations, bringing together DS Smith and IP assets across Europe, the Middle East and Africa.
The decision follows a year of integration work after the combination of International Paper and DS Smith. According to the company, operating the businesses as two regionally focused entities will allow each to pursue tailored strategies, capital allocation priorities and transformation roadmaps aligned with distinct market dynamics.
North America: focus on scale and operational performance
Post-separation, International Paper will concentrate on strengthening its position as a leading sustainable packaging producer in North America. The company plans to continue streamlining its footprint, optimizing asset networks and investing in innovation, productivity and customer service, while maintaining an investment-grade balance sheet.
Management said the more focused structure is expected to support earnings growth, stronger cash flow generation and disciplined investment in organic growth and selective acquisitions. Andy Silvernail will remain Chairman and Chief Executive Officer of International Paper, alongside Chief Financial Officer Lance Loeffler and Tom Hamic, President of Packaging Solutions North America.
EMEA Packaging to operate as a standalone business
The new EMEA Packaging company will be built around the former DS Smith platform and IP’s regional assets, operating across 30 countries. As an independent business, it will pursue its own 80/20 transformation roadmap, with an emphasis on cost optimization, innovation, service performance and sustainability-driven packaging solutions.
International Paper said it intends to continue investing in the EMEA business through 2026 to support margin improvement and free cash flow ahead of the separation. Following completion, Tim Nicholls is expected to serve as Chief Executive Officer of the new company, with David Robbie anticipated to become Chairman of the Board.
Transaction timeline and structure
The separation is expected to be executed as a spin-off of the combined EMEA Packaging business to shareholders, with International Paper retaining a meaningful ownership stake. The new company is expected to be listed on both the London Stock Exchange and the New York Stock Exchange.
Subject to regulatory approvals and customary closing conditions, the transaction is targeted for completion within 12 to 15 months. International Paper noted that final details regarding capital structure and broader leadership appointments will be communicated at a later stage.
International Paper is a global provider of sustainable packaging solutions, serving customers across North America, Europe, the Middle East and Africa. The company focuses primarily on corrugated packaging and packaging solutions designed to strengthen supply chains and support customer sustainability goals. International Paper is listed on the New York Stock Exchange (IP) and the London Stock Exchange (IPC).
Source: International Paper
