International Paper Considers Sale of EMEA Packaging Business
International Paper is considering a potential sale of its packaging operations in Europe, the Middle East and Africa (EMEA), while continuing plans to separate the business from the wider group and establish an independent listed company. On 15 October 2026, the US-based company confirmed that it was in discussions with potential bidders after receiving unsolicited approaches. The process remains at an early stage, and there is no certainty that a deal will be reached.
Private equity interest reported
The news followed a report by the Financial Times that private equity firms Lone Star and Atlas Holdings were exploring separate bids for the EMEA business. According to reports in the financial press, including Reuters’ coverage, the division could be valued at less than $6 billion.
That figure relates to potential offers reported by the media; it is not an agreed transaction price. International Paper has not announced a deal with either fund or publicly confirmed a final valuation for the business. The company said it was evaluating unsolicited approaches, while emphasising that discussions were still at an early stage.
From a planned spin-off to a possible sale
In January 2026, International Paper announced plans to create two independent publicly traded companies: one focused on North America and the other on its EMEA packaging operations. The latter would combine EMEA assets originating from both International Paper and DS Smith, which International Paper acquired in January 2025.
The original plan envisaged a spin-off of the EMEA division, with a listing on the London Stock Exchange and a Level II American Depositary Receipt programme in New York. On 14 October 2026, International Paper reiterated its plans for the separation. The following day, it confirmed that it was also considering a potential sale, meaning the two options are now being pursued in parallel.
No final decision has been made
International Paper has stressed that it cannot guarantee that a sale will be agreed or completed. The company has also said that the ultimate timing and structure of the separation remain uncertain. The possible sale should therefore not be presented as a completed transaction or a definitive decision to abandon the spin-off.
The development matters because it could change the route originally envisaged for the EMEA business. A sale to a financial investor would offer an alternative to creating an independent listed company through a spin-off, but the outcome will depend on the progress of discussions and the company’s assessment of its options.
International Paper has also announced a DS Smith Capital Markets Day for 3 November 2026, when further updates on the separation process are expected. Until the company announces a decision, both a separate listing and a potential sale remain possible outcomes.
