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CINCINNATI - ProAmpac, a flexible packaging company, has acquired International Paper’s (NYSE:IP) bag converting operations, according to a press release statement. International Paper, a prominent player in the Containers & Packaging industry with a market capitalization of $24.9 billion, has maintained dividend payments for 55 consecutive years, currently offering a 4% yield. The acquisition includes facilities in California, Oregon, and Texas that specialize in kraft paper bag manufacturing for grocery, convenience store, and quick-service restaurant markets.
The transaction expands ProAmpac’s production capacity on the U.S. west coast and supports what the company calls its "Fiberization of Packaging" strategy. The acquired operations produce various kraft paper products including handled shopping bags, self-opening sacks, and smaller format options. According to InvestingPro data, International Paper generated revenues of $21.9 billion in the last twelve months, with analysts anticipating sales growth in the current year.
"Global demand for reliable, recyclable paper packaging continues to grow rapidly amid evolving consumer expectations and market trends redefining recyclability," said Greg Tucker, ProAmpac founder and CEO. For detailed analysis of International Paper’s growth prospects and 6 additional exclusive ProTips, visit InvestingPro, where you’ll find comprehensive research reports covering 1,400+ top US stocks.
Allison Magness, International Paper’s group vice president of specialty business, stated that the bag business "is strong, being built on sustainability and reliability, with a winning team."
The financial terms of the transaction were not disclosed.
Cincinnati-based ProAmpac is owned by Pritzker Private Capital along with management and co-investors. International Paper, headquartered in Memphis, Tennessee, reported net sales of $18.6 billion for 2024 and acquired DS Smith in 2025.
In other recent news, International Paper has announced a quarterly dividend of $0.4625 per share, payable on December 16, 2025, to shareholders of record as of November 14, 2025. The company also received early termination of the waiting period from the Federal Trade Commission for the sale of its Global Cellulose Fibers business, a move involving multiple international subsidiaries. In terms of analyst ratings, Stifel upgraded International Paper’s stock from Hold to Buy, citing a strategic pivot expected to enhance profits and margins. Conversely, Seaport Global Securities downgraded the stock from Buy to Neutral due to valuation concerns and a profit improvement timeline extending into 2027. These developments reflect a mix of strategic maneuvers and analyst perspectives impacting International Paper’s market position.
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