International Paper ("IP") and DS Smith Plc have reached agreement on the terms of a recommended all-share combination, creating a truly global leader in sustainable packaging solutions.
The terms of the combination value each DS Smith share at 415 pence per share, and will result in IP issuing 0.1285 shares for each DS Smith share, resulting in pro forma ownership of 66.3% for IP shareholders and 33.7% for DS Smith shareholders, implying a transaction value of approximately $9.9 billion. The combination is expected to close by the Q4 2024.
CEO-Elect of IP, Andrew K. Silvernail will be CEO of the combined company and CEO of DS Smith, Miles Roberts, will be retained as a consultant to assist with integration matters. As part of the combination, up to two non-executive directors of DS Smith will be invited to join the Board of the combined company upon close of the combination.
The combined company will be headquartered in Memphis, Tennessee, with plans to establish an EMEA headquarters at DS Smith's existing London headquarters.
International Paper is a global provider of renewable fiber-based packaging and pulp products, and one of the world's largest recyclers.
DS Smith is a leading provider of sustainable fiber-based packaging worldwide, which is supported by recycling and papermaking operations.
