International Paper Weighs Sale of European Packaging Unit as Private Equity Interest Lifts Shares

IP said on October 15 that it is evaluating unsolicited inbound inquiries for its EMEA Packaging Business and is in discussions with potential bidders, while continuing to prepare a spin-off of the same unit. The company described the process as at an early stage, with no certainty that any sale will be agreed or completed, and said it is "progressing the spin off and evaluating the potential sale in parallel."

The statement followed a Financial Times report, relayed by Reuters, that private equity firms Lone Star and Atlas Holdings are exploring separate bids for the business. According to that report, the bids could value the unit at less than $6 billion. Lone Star declined to comment and Atlas did not respond to Reuters. The shares rose about 7% during the session, and SentiSense price data showed them at $34.10, up 6.9%, after the close.

The European unit combines the former DS Smith, which International Paper bought last year for $7.2 billion according to Reuters, with its own legacy EMEA operations. The spin-off was first announced on January 29, 2026, and on October 14 the company confirmed it expects to carry it out through a London Stock Exchange listing with a Level II ADR program on the NYSE. That still requires final board approval, an effective SEC registration statement and an FCA-approved prospectus. The independent company would be named DS Smith plc, and its leadership is due to host a Capital Markets Day in London on November 3.

A sale would hand International Paper cash that a spin-off does not, but the reported valuation sits below what it paid for DS Smith, so the price of any firm offer matters more than the existence of interest. The backdrop is a softer earnings base: SentiSense data shows the company's adjusted EBITDA fell 12.4% year over year in the second quarter of 2026. The next markers are whether either firm submits a priced offer, what management says at the November 3 event, and whether the company holds to its target of completing the separation in early 2027.