MEMPHIS, Tenn. - International Paper (NYSE: IP, LSE: IPC), a global leader in packaging solutions with annual revenue of $18.62 billion and EBITDA of $2.04 billion, has entered into exclusive negotiations for the sale of five of its corrugated box plants in Europe to Germany’s PALM Group. According to InvestingPro analysis, the company currently trades near its Fair Value, with analysts expecting both sales and net income growth this year. The prospective deal includes three facilities in France, one in Portugal, and one in Spain. Subject to consultations and regulatory approvals, the transaction is expected to close by the end of the second quarter of 2025.
The divestiture was mandated by the European Commission following International Paper’s acquisition of DS Smith Plc, a move that was aimed at maintaining competitive balance in the packaging industry. The sale of these plants is a condition set by the European Commission, and its approval of PALM as the purchaser is pending. With a solid financial health score of FAIR and a 55-year track record of consistent dividend payments, International Paper demonstrates strong operational stability during this transition period. Discover more detailed insights and financial metrics with an InvestingPro subscription, which offers over 8 additional exclusive ProTips about International Paper’s current position and future prospects.
International Paper’s Chairman and CEO, Andy Silvernail, expressed satisfaction in finding a suitable buyer in PALM Group, acknowledging the contributions of the employees at the affected plants and expressing confidence in their continued success under new ownership.
This strategic move will allow International Paper to fulfill its obligations to the European Commission, stemming from the January 24, 2025, acquisition of DS Smith Plc. The completion of this sale is a significant step in the regulatory process.
PALM Group, a family-owned enterprise and one of Europe’s leading producers of containerboard and corrugated packaging, is poised to expand its operations with this acquisition. In 2024, PALM’s 4,200 employees generated a turnover of €2 billion.
BofA Securities is acting as the financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP as the legal adviser to International Paper for this transaction.
The sale remains contingent on certain conditions, and while expectations are set for a successful closure, International Paper has noted that the completion of the negotiations, the timing of the closure, and the financial impact are subject to various uncertainties.
This announcement is based on a press release statement by International Paper and does not constitute an offer or solicitation for the sale of securities. The company maintains a strong market position with a gross profit margin of 28.64% and current ratio of 1.51, indicating healthy operational efficiency and liquidity.
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