Key Takeaways
- • International Paper (IP.N) said on October 15, 2026 that it is in talks with potential bidders for its EMEA packaging business after receiving unsolicited approaches, creating an alternative to its planned spinoff.
- • The Financial Times reported that private equity firms Lone Star and Atlas Holdings are exploring separate bids that could value the unit at less than $6 billion.
- • IP said the sale process is at an early stage with no certainty of a deal, and it continues to pursue the spinoff while evaluating a sale.
- • IP shares rose about 8% on the news, per Reuters.
- • The EMEA unit was formed from the DS Smith business, acquired for $7.2 billion last year, combined with IP's existing regional operations.
Summary
International Paper said on Thursday, October 15, that it was in talks with potential bidders for its Europe, Middle East and Africa (EMEA) packaging business following unsolicited approaches. The paper and packaging producer described the sale process as early-stage and said there was no certainty a transaction would be agreed. The company is continuing to pursue its planned spinoff of the unit while it evaluates a potential sale, according to Reuters. Shares of International Paper were up about 8% following the announcement.
The statement came after the Financial Times reported, citing people familiar with the matter, that private equity firms Lone Star and Atlas Holdings were exploring separate bids for the business, potentially valuing it at less than $6 billion. Atlas Holdings did not respond to a Reuters request for comment, and Lone Star declined to comment.
In January, International Paper announced plans to split into two publicly traded companies by spinning off its EMEA business, with the unit expected to be listed in London and New York. The EMEA business would consist of combined regional operations originating from DS Smith, acquired for $7.2 billion last year, and from International Paper. The company said on Thursday that no assurance can be provided on the ultimate timing or structure of the proposed separation.
The transaction comes as International Paper, which accounts for roughly one-third of the North American corrugated packaging market, contends with soft demand linked to weak consumer spending and the housing market. In July, the company missed Wall Street expectations for second-quarter sales and trimmed the top end of its annual profit forecast while it restructured operations.
The statement came after the Financial Times reported, citing people familiar with the matter, that private equity firms Lone Star and Atlas Holdings were exploring separate bids for the business, potentially valuing it at less than $6 billion. Atlas Holdings did not respond to a Reuters request for comment, and Lone Star declined to comment.
In January, International Paper announced plans to split into two publicly traded companies by spinning off its EMEA business, with the unit expected to be listed in London and New York. The EMEA business would consist of combined regional operations originating from DS Smith, acquired for $7.2 billion last year, and from International Paper. The company said on Thursday that no assurance can be provided on the ultimate timing or structure of the proposed separation.
The transaction comes as International Paper, which accounts for roughly one-third of the North American corrugated packaging market, contends with soft demand linked to weak consumer spending and the housing market. In July, the company missed Wall Street expectations for second-quarter sales and trimmed the top end of its annual profit forecast while it restructured operations.
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