International Paper plans separation into two independent publicly traded companies
International Paper announced plans to create two independent, publicly traded companies through the separation of its North American and EMEA packaging businesses. The move is intended to establish two focused leaders in sustainable packaging solutions, each with dedicated management teams, tailored business models and distinct capital allocation strategies.
Under the proposed structure, International Paper will comprise the company’s current North American operations, including both legacy International Paper assets and those acquired from DS Smith. The second company, referred to as EMEA Packaging, will include the group’s Packaging Solutions business in Europe, the Middle East and Africa, bringing together legacy DS Smith and International Paper assets in the region.
According to the company, the separation will create two regionally focused organisations with compelling financial profiles, enabling sharper strategic execution and improved value creation for shareholders. Over the past year, the integration of International Paper and DS Smith strengthened operations in both North America and EMEA, with the company’s 80/20 performance system delivering regional benefits, improved customer service and a stronger supply position.
“During the past year, two regional powerhouses have been created, with scale, strong customer relationships, leading brands and talented teams,” said Andy Silvernail, Chairman and CEO of International Paper. “The businesses operate in distinct market environments and are at different stages of their transformation. The next step in the transformation journey is to create two independent, regionally focused companies, enabling both to achieve best-in-class performance and maximise long-term value creation.”
Focus on North America
Following the separation, International Paper will concentrate exclusively on North America, operating its Packaging Solutions North America business. The company aims to strengthen its position as a leading sustainable packaging supplier by focusing on innovation, customer proximity and cost efficiency. The strategy builds on actions already taken to streamline the industrial footprint, decentralise operations and optimise asset networks through the deployment of its lighthouse operating model.
International Paper stated that continued progress in North America is expected to support earnings growth, stronger cash flow generation and attractive shareholder returns. Post-separation, the company plans to accelerate investment in organic growth, productivity initiatives and disciplined strategic acquisitions, while maintaining an investment-grade balance sheet. Andy Silvernail will remain Chairman and CEO, with Lance Loeffler continuing as Chief Financial Officer and Tom Hamic as Executive Vice President and President of Packaging Solutions North America.
EMEA Packaging as a standalone company
The new EMEA Packaging company will operate across 30 countries in Europe, the Middle East and Africa, comprising International Paper’s current Packaging Solutions EMEA business operating as DS Smith. As a standalone entity, the company is expected to accelerate its ambition to become the leading sustainable packaging solutions provider in Europe, supported by innovation, high-performance operations and sustainability leadership.
During 2025, the EMEA business began executing its focused 80/20 roadmap, aimed at optimising its footprint, structurally reducing costs, extending product and service innovation and driving targeted reinvestments. International Paper indicated that further investments will be made throughout 2026, ahead of the separation, to improve margins and free cash flow and to prepare the business for independence.
After completion of the transaction, Tim Nicholls is expected to serve as Chief Executive Officer of the new EMEA company, while David Robbie is expected to become Chairman of the Board of Directors.
Transaction details
The separation is expected to be structured as a spin-off of the combined EMEA Packaging business to International Paper shareholders, with International Paper retaining a meaningful ownership stake. The new company is expected to be listed on both the London Stock Exchange and the New York Stock Exchange. Completion is anticipated within 12 to 15 months, subject to customary conditions, regulatory approvals and final authorisation by the International Paper Board of Directors.
