International Paper Closes Its Acquisition of DS Smith, Creating a Transatlantic Packaging Leader

Summary: International Paper (IP) has completed its acquisition of DS Smith, the British multinational packaging business, closing the all-share deal announced in spring 2024 and valued at 5.8 billion pounds (7.12 billion dollars). Under the terms, IP issues approximately 179.8 million new shares of common stock, offering 0.1285 new shares for each DS Smith ordinary share, with the new shares expected to commence trading on the New York Stock Exchange under the ticker 'IP' from February 4, 2025 and to be available on the London Stock Exchange through a secondary listing under the symbol 'IPC'.

The terms of the combination

The merger is anticipated to generate significant value for shareholders and to establish the combined entity as a global leader in sustainable packaging solutions, with a focus on the growing and attractive markets of North America and Europe. IP made its all-share offer for DS Smith in March 2024, and last month the company anticipated European Union approval for the 5.8-billion-pound deal; the completion was announced on January 31, 2025 in the company's own release, with the trade-press recap following on February 3. The share exchange ratio of 0.1285 IP shares per DS Smith ordinary share determines the ownership split of the combined group, while the dual New York and London listing keeps the former DS Smith shareholder base inside a single quoted instrument.

What the combined company says it becomes

IP chair and chief executive Andrew Silvernail (Эндрю Силвернейл) framed the closing as a category move rather than a scale move: "The combination of International Paper and DS Smith will create the world's leading sustainable packaging company. With a differentiated geographic footprint and an unparalleled suite of sustainable packaging products and services, we will accelerate growth, improve profitability and serve our customers even better." The geographic logic pairs IP's North American corrugated and pulp base with DS Smith's European packaging network, giving the combined group a two-continent footprint in corrugated packaging, the grade that has absorbed industry investment as graphic paper declines.

The advisory line-up

BofA Securities acted as exclusive financial advisor to International Paper, with Skadden, Arps, Slate, Meagher & Flom as legal counsel and Sidley Austin as US antitrust legal advisor.
DS Smith was advised by Goldman Sachs International, Citigroup Global Markets and J.P. Morgan Securities.
Legal advice to DS Smith was provided by Slaughter and May, with Sullivan & Cromwell acting as its US legal advisor.
Regulatory clearance in the European Union preceded the closing, completing the approval path for the all-share structure.

Contact

International Paper, Memphis, Tennessee, United States. Media and investor relations enquiries are handled through the corporate website https://www.internationalpaper.com.