International Paper finalises DS Smith acquisition, strengthening sustainable packaging leadership

International Paper has officially completed its strategic business acquisition of DS Smith, marking a significant milestone in the global packaging industry. This merger strengthens International Paper’s position as a global packaging leader, expanding its reach across North America and Europe while reinforcing its commitment to sustainable packaging solutions.

Strategic Acquisition Expands Market Presence and Enhances Sustainability Capabilities

The deal, which involves the issuance of approximately 179.8 million new shares of International Paper common stock, underscores the company’s ambition to drive long-term growth and improve profitability. International Paper CEO Andrew K. Silvernail highlighted the acquisition’s transformative potential, stating, “This combination creates the world’s foremost provider of sustainable packaging solutions, enhancing our ability to innovate, serve customers effectively, and achieve greater operational efficiencies.”

With sustainability driving consumer and regulatory preferences, the acquisition positions International Paper to deliver cutting-edge packaging solutions that align with evolving environmental standards.

Financial and Market Impact of the Acquisition

Under the terms of the agreement, DS Smith shareholders will receive 0.1285 International Paper shares for each DS Smith ordinary share, with trading of the newly issued shares set to commence on the New York Stock Exchange (NYSE) under the ticker ‘IP’ on February 4, 2025. Simultaneously, International Paper will launch a secondary listing on the London Stock Exchange (LSE) under the symbol ‘IPC’, broadening its investor base.

The acquisition is projected to generate at least $514 million in cost synergies, improving financial efficiency and enhancing International Paper’s global supply chain. Analysts expect the deal to be earnings per share (EPS) accretive in the first year, reinforcing the company’s strong financial standing.

Industry experts suggest that the merger will help International Paper navigate rising raw material costs, fluctuating demand, and evolving sustainability regulations, giving it a competitive edge in a rapidly shifting market.

Expanding Innovation in Sustainable Packaging Solutions

The integration of DS Smith expands International Paper’s portfolio of sustainable packaging solutions, particularly in the growing North American and European markets. The company aims to leverage DS Smith’s expertise in recyclable and biodegradable materials, positioning itself at the forefront of eco-friendly packaging innovation.

“With this acquisition, International Paper strengthens its ability to offer high-quality, sustainable packaging solutions that cater to increasing regulatory requirements and consumer preferences,” said an industry analyst. “This merger enhances International Paper’s capacity for innovation, allowing it to develop next-generation packaging materials that reduce environmental impact.”

By combining International Paper’s extensive North American network with DS Smith’s well-established European operations, the company is expected to improve production efficiencies, streamline logistics, and enhance service offerings.

Advisors and Legal Counsel Supporting the Deal

Several leading financial and legal advisors played key roles in finalizing the acquisition. BofA Securities, Inc. served as the sole financial advisor to International Paper, while Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel. Sidley Austin LLP advised on U.S. antitrust matters related to the deal.

DS Smith received advisory support from Goldman Sachs International, Citigroup Global Markets Limited, and J.P. Morgan Securities Plc, with Slaughter and May overseeing legal matters in the UK and Sullivan & Cromwell LLP handling legal affairs in the U.S.

Long-Term Growth Strategy and Market Expansion

The acquisition aligns with International Paper’s broader strategy to strengthen its global packaging leader status by expanding its market share in North America and Europe. The increasing demand for sustainable packaging solutions presents growth opportunities, particularly as e-commerce and regulatory pressures drive a shift toward environmentally responsible materials.

With net sales reaching $18.6 billion in 2024, International Paper is now better positioned to capitalize on emerging market trends, sustainability regulations, and evolving consumer preferences. The company aims to enhance operational efficiencies, increase profitability, and reinforce its commitment to sustainability in the coming years.

Industry observers anticipate that the acquisition will reshape the competitive landscape, prompting other packaging companies to accelerate their own sustainability initiatives to remain viable in an increasingly eco-conscious market.

The Future of Sustainable Packaging After the Acquisition

As sustainable packaging solutions continue to gain momentum, International Paper’s acquisition of DS Smith represents a strategic business acquisition that strengthens its ability to meet global sustainability goals. By integrating DS Smith’s technological expertise and innovation-driven approach, International Paper aims to set new industry standards in recyclability, biodegradable materials, and packaging efficiency.

This merger positions International Paper as a global packaging leader, well-equipped to navigate shifting market dynamics while delivering long-term value to customers and shareholders. With sustainability at the forefront of its growth strategy, the company is poised to play a central role in shaping the future of environmentally friendly packaging.