04.16.24
International Paper and DS Smith Plc announced that they have reached agreement on the terms of a recommended all-share combination, creating a 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 percent for IP shareholders and 33.7 percent for DS Smith shareholders, implying a transaction value of approximately $9.9 billion. The combination is expected to close by the fourth quarter of 2024.
Pro forma 2023 combined revenues were approximately $28.2 billion and combined adjusted EBITDA of approximately $4.1 billion.
"Combining with DS Smith is a logical next step in IP's strategy to drive profitable growth by strengthening our global packaging business," said Mark S. Sutton, chairman and CEO of IP. "DS Smith is a leader in packaging solutions with an extensive reach across Europe, which complements IP's capabilities and will accelerate growth through innovation and sustainability. We are confident this combination will drive significant value for our employees, customers, and shareholders."
“Bringing together the capabilities and expertise of both companies will create a winning position in renewable packaging across Europe, while also enhancing IP's North American business,” Andrew K. Silvernail, CEO-elect of IP, added.
“The combination with IP is an attractive opportunity to create a truly international sustainable packaging solutions leader that is well positioned in attractive and growing markets across Europe and North America,” noted DS Smith CEO Miles Roberts. “It combines two focused and complementary businesses.
“DS Smith has grown significantly through a dedication to customers, focus on innovation, quality of packaging and high levels of service,” added Roberts. “In a dynamic sustainable packaging landscape, the combination will enhance our global proposition to customers, create opportunities for colleagues and drive value for shareholders who can remain fully invested in such an exciting business."
This combination establishes a differentiated corrugated packaging company with approximately 90% of revenue from sustainable fiber-based packaging, and combines DS Smith's extensive European sales of $9.4 billion in FY23 with IP's European sales of $1.5 billion in FY23. The combined company will be headquartered in Memphis, TN, and the plan is to retain DS Smith's London headquarters as IP's new EMEA headquarters.
Andrew K. Silvernail will be CEO of the combined company and 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 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 percent for IP shareholders and 33.7 percent for DS Smith shareholders, implying a transaction value of approximately $9.9 billion. The combination is expected to close by the fourth quarter of 2024.
Pro forma 2023 combined revenues were approximately $28.2 billion and combined adjusted EBITDA of approximately $4.1 billion.
"Combining with DS Smith is a logical next step in IP's strategy to drive profitable growth by strengthening our global packaging business," said Mark S. Sutton, chairman and CEO of IP. "DS Smith is a leader in packaging solutions with an extensive reach across Europe, which complements IP's capabilities and will accelerate growth through innovation and sustainability. We are confident this combination will drive significant value for our employees, customers, and shareholders."
“Bringing together the capabilities and expertise of both companies will create a winning position in renewable packaging across Europe, while also enhancing IP's North American business,” Andrew K. Silvernail, CEO-elect of IP, added.
“The combination with IP is an attractive opportunity to create a truly international sustainable packaging solutions leader that is well positioned in attractive and growing markets across Europe and North America,” noted DS Smith CEO Miles Roberts. “It combines two focused and complementary businesses.
“DS Smith has grown significantly through a dedication to customers, focus on innovation, quality of packaging and high levels of service,” added Roberts. “In a dynamic sustainable packaging landscape, the combination will enhance our global proposition to customers, create opportunities for colleagues and drive value for shareholders who can remain fully invested in such an exciting business."
This combination establishes a differentiated corrugated packaging company with approximately 90% of revenue from sustainable fiber-based packaging, and combines DS Smith's extensive European sales of $9.4 billion in FY23 with IP's European sales of $1.5 billion in FY23. The combined company will be headquartered in Memphis, TN, and the plan is to retain DS Smith's London headquarters as IP's new EMEA headquarters.
Andrew K. Silvernail will be CEO of the combined company and 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.