International Paper has announced that it has entered into exclusive negotiations with Germany’s PALM Group to sell five corrugated packaging facilities in Europe.
The divestment is intended to satisfy regulatory commitments linked to its recent acquisition of DS Smith Plc.
The proposed transaction includes three plants in Normandy, France (Saint-Amand, Mortagne, and Cabourg), as well as sites in Ovar, Portugal, and Bilbao, Spain. Closing is expected by the end of the second quarter of 2025, pending employee consultation processes and regulatory approvals, including final sign-off from the European Commission.
"Finding the right buyer for these five facilities has been a top priority since our acquisition of DS Smith," said Andy Silvernail, Chairman and CEO of International Paper. "We’re confident that PALM will continue to support the teams and deliver long-term value."
The sale fulfills a condition imposed by the European Commission to preserve competition in the European packaging market following the DS Smith deal, which was finalized earlier this year. Upon completion, International Paper will have met all its commitments to the Commission.
PALM is a family-owned company headquartered in Aalen, Germany. It operates five paper mills and 29 corrugated box plants across Europe. With more than 4,200 employees and €2 billion in annual turnover, the company is known for its focus on high product quality and sustainable production practices.
International Paper is a global leader in sustainable packaging solutions, with operations in over 30 countries and a workforce of more than 65,000. Headquartered in Memphis, Tennessee, and with regional headquarters in London, the company serves customers worldwide with innovative, fiber-based packaging. In 2025, International Paper acquired DS Smith, strengthening its position in North America and EMEA.
