International Paper confirms EMEA sale talks after shares jump on a bid report
The Financial Times named Lone Star and Atlas Holdings and a possible value under $6 billion. International Paper named no bidder and no price, and said a London spinoff is still going ahead.
Key takeaways
International Paper confirmed Thursday afternoon that it is in early talks to sell its packaging business in Europe, the Middle East and Africa, hours after a Financial Times report of private equity bids had already lifted the shares.
The Financial Times reported Thursday morning that Lone Star and Atlas Holdings were exploring separate bids, potentially valuing the business at less than $6 billion, citing people familiar with the matter. In a report timestamped 10:21 a.m. ET, Reuters said the New York shares were already up about 7%. Lone Star declined to comment, Reuters said, and Atlas Holdings had not responded.
At 1:09 p.m. ET, the company said it noted the recent movement in its share price and the press speculation regarding a sale. It confirmed it is evaluating unsolicited inquiries and is in discussion with potential bidders. The process is at an early stage, it said, and there can be no certainty a sale will be agreed or completed.
By 1:55 p.m. ET, the shares were at $34.40, up 7.8% from Wednesday's close of $31.90, not much beyond the gain of about 7% that Reuters had already recorded at 10:21 a.m.
The spinoff has not been called off
Before the company spoke, Reuters reported that a sale would mean scrapping the plan to spin the business off.
"The Company is progressing the spin off and evaluating the potential sale in parallel," International Paper said.
It added that there is no assurance on the ultimate timing or structure of the separation.
On Jan. 29, 2026, the company said it expected to separate the business into its own public company. The listing would be in London, where DS Smith, the packaging company International Paper bought in 2025, is based. Thursday's statement left a Nov. 3 capital markets day there on the calendar.
A buyer would get the regional packaging business
The business in the talks is the combined packaging operations of International Paper and DS Smith in Europe, the Middle East and Africa. North American assets from the 2025 acquisition stay with International Paper.
In the quarter ended June 30, that business had net sales of $2.3 billion, little changed from a year earlier. International Paper reported the figures on July 30.
It lost $80 million at the operating line.
International Paper reports third-quarter results on Oct. 28, before the New York open.
Frequently asked questions
Did International Paper confirm it is selling the business?
It confirmed early talks with potential bidders, but said there is no certainty a sale will be agreed or completed.
Who is reported to be bidding?
The Financial Times named Lone Star and Atlas Holdings, while International Paper named no bidder and no price.
Is the London spinoff cancelled?
No, International Paper said it is progressing the spinoff and evaluating a potential sale in parallel.
What would a buyer get?
A buyer would get the combined International Paper and DS Smith packaging operations in Europe, the Middle East and Africa, not the North American assets.
