Dive Brief:
- International Paper announced Thursday it plans to split into two independent, publicly traded companies based on geography, following its acquisition of U.K.-based DS Smith in January 2025.
- Going forward, IP would be comprised of the current North American business, which includes legacy assets from both IP and DS Smith. The Europe, Middle East and Africa business would include legacy assets from both companies in that region. IP’s current EMEA business operates in 30 countries across the region.
- IP expects to complete the spinoff in the next 12 to 15 months, pending board and regulatory approvals in both the United States and United Kingdom.
Dive Insight
International Paper has undergone a plethora of change in the last year and a half, including M&A, leadership changes and footprint optimization that has resulted in thousands of layoffs.
The company reported in its earnings release Thursday that its North American business had $15.2 billion in sales in 2025, while its EMEA business had $8.5 billion.
With the split, the EMEA business would be structured as a spinoff, of which IP intends to “retain a meaningful ownership stake.” The new company is expected to be listed on both the London Stock Exchange and the New York Stock Exchange.
“The separation will create two leading sustainable packaging solutions companies, each with focused management teams and business models, tailored investment and capital allocation strategies, and compelling financial profiles,” according to a company news release. The separation will allow IP to “be even more focused.”
Andy Silvernail, who became CEO of International Paper in May 2024, will remain in that position. IP CFO Lance Loeffler and Executive Vice President and President of Packaging Solutions North America Tom Hamic both will remain in those positions as well.
Tim Nicholls will serve as CEO of the new publicly traded EMEA packaging company. In February 2025, IP had announced that on April 1 Nicholls would become executive vice president and president of DS Smith, an International Paper company.
IP noted in Thursday’s news release that it has “complied with its post-offer intention statements regarding DS Smith” outlined in the finalized acquisition transaction. These statements include IP’s intent “to move quickly” to combine the businesses; that IP’s leadership would lead the group board; and that operations would continue as-is at IP’s European manufacturing sites and DS Smith’s North American manufacturing sites.
Upon taking over the CEO role in 2024, Silvernail quickly began implementing what he calls the 80/20 efficiency plan to optimize the business with cost-cutting measures. “Throughout 2026 and prior to the separation, International Paper plans to continue to invest in EMEA to further advance its 80/20 plans and prepare the business to separate with higher margins and improving free cash flow,” the news release says.
The EMEA business split will “accelerate its path to being the leading European sustainable packaging solutions company.” The independent company “will be equipped to tailor its strategy and capital allocation to the specific characteristics of EMEA.”
Silvernail reiterated in Thursday's news release that the two legacy companies are in different stages of their transformation plans, a refrain he repeated throughout 2025. IP has learned a lot, particularly about the two businesses’ regional needs and value creation, according to the release.
“Taking this swift, decisive action now will enable both businesses to reach best-in-class performance and maximize long-term value creation through enhanced focus on their unique opportunities and targeted investment approaches,” Silvernail said
IP executives are expected to discuss more details during its earnings call Thursday morning.
This is a developing story.
