International Paper completes sale of five European plants to PALM Group

MEMPHIS - International Paper (NYSE:IP; LSE:IPC), a global packaging leader with a market capitalization of $24.7 billion, announced Tuesday the completion of its divestiture of five European corrugated packaging plants to Germany’s PALM Group, fulfilling regulatory requirements related to its acquisition of DS Smith Plc. According to InvestingPro data, the company maintains a strong dividend track record, having paid dividends for 55 consecutive years.

The transaction includes three facilities in Normandy, France (box plants in Saint-Amand and Mortagne, plus a sheet plant in Cabourg), along with box plants in Ovar, Portugal and Bilbao, Spain.

The divestiture was mandated by the European Commission as a condition for approval of International Paper’s acquisition of DS Smith, according to the company. The sale satisfies all obligations International Paper had toward European regulators in connection with the DS Smith acquisition.

The European Commission had published the remedial requirements on January 24, 2025, as part of its regulatory review process.

PALM Group, a family-owned European manufacturer of containerboard, graphic paper and corrugated packaging, will add these five facilities to its existing operations. Prior to this acquisition, PALM operated five paper mills and 28 corrugated box plants across Europe.

International Paper, headquartered in Memphis, Tennessee, with EMEA operations based in London, employs more than 65,000 people globally and maintains operations in over 30 countries. The company reported net sales of $18.6 billion for 2024, with current revenue growth at 7.5% and a healthy gross profit margin of 29%. InvestingPro analysis shows the company maintains a stable financial health score, with analysts projecting continued profitability for the current year.

The information in this article is based on a press release statement from International Paper.

In other recent news, International Paper has announced strategic changes to its North American operations, including exiting the molded fiber business and converting its Reno, Nevada facility to support packaging operations. This move involves the closure of its packaging facility in Marion, Ohio, and a recycling facility in Wichita, Kansas, impacting approximately 134 positions. Additionally, International Paper plans to sell its containerboard mill and recycling plants in Xalapa, Mexico, to APSA, aligning with its strategy to optimize operations. The company is also exploring the possibility of building a new sustainable packaging facility in Salt Lake City, Utah, as part of its growth plans in the United States. Meanwhile, UBS analysts have initiated a Buy rating on International Paper, forecasting significant EBITDA growth and potential stock re-rating due to cost savings and price increases. Truist Financial Corporation noted a rise in containerboard prices in Italy and Spain, which is seen as a positive development for International Paper. These recent developments reflect International Paper’s strategic focus on growth and operational efficiency.

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