Memphis, Tennessee, January 30, 2026
International Paper, based in Memphis, Tennessee, has announced a strategic separation into two publicly traded companies. This division will split its North American operations from its Europe, Middle East, and Africa (EMEA) business. Expected to complete within 12 to 15 months, the split aims to enhance performance and value creation by allowing each entity to focus on its respective market. The North American side will continue operating under the International Paper name, while the EMEA business will combine assets with DS Smith and seek listings in London and New York.
Memphis, Tennessee – International Paper Announces Split into Two Independent Companies
Memphis-based International Paper has announced plans to divide into two publicly traded companies, separating its North American operations from its Europe, Middle East, and Africa (EMEA) operations. The separation is expected to be completed within 12 to 15 months, subject to customary conditions.
Details of the Split
The North American business will retain the International Paper name and focus on providing sustainable packaging solutions for the North American market. This entity reported pro forma 2025 net sales of $15.2 billion and adjusted EBITDA of $2.3 billion. The EMEA Packaging business will combine legacy International Paper assets with those from the recently completed $9.9 billion acquisition of DS Smith. This new company will seek a primary listing on the London Stock Exchange and a secondary listing in New York, with pro forma 2025 net sales of $8.5 billion and adjusted EBITDA of $800 million.
Strategic Rationale
CEO Andy Silvernail emphasized that the decision to split into two public companies will allow both businesses to focus on their respective regional markets, leading to enhanced performance and value creation. The separation aims to create two leading sustainable packaging solutions companies, each with tailored investment and capital allocation strategies.
Financial Implications
In conjunction with the announcement, International Paper reported a pre-tax, non-cash goodwill impairment charge of $2.47 billion as of December 31, 2025, related to the EMEA Packaging reporting unit. This charge reflects the company’s evaluation of the fair value of its EMEA operations in light of the planned separation.
Background
International Paper, headquartered in Memphis, Tennessee, is a global producer of renewable fiber-based packaging and pulp products. The company completed the acquisition of London-based DS Smith in a $9.9 billion deal in January 2025, significantly strengthening its presence in the European market. The planned separation into two independent companies follows this strategic acquisition and aims to optimize operations and focus on regional market dynamics.
Frequently Asked Questions (FAQ)
What is International Paper’s plan regarding its operations?
International Paper plans to split into two publicly traded companies, separating its North American operations from its Europe, Middle East, and Africa (EMEA) operations. The separation is expected to be completed within 12 to 15 months, subject to customary conditions.
What are the expected financial outcomes of the split?
The North American business reported pro forma 2025 net sales of $15.2 billion and adjusted EBITDA of $2.3 billion. The EMEA Packaging business, combining legacy International Paper assets with those from the recently completed $9.9 billion acquisition of DS Smith, reported pro forma 2025 net sales of $8.5 billion and adjusted EBITDA of $800 million.
What is the strategic rationale behind the separation?
CEO Andy Silvernail emphasized that the decision to split into two public companies will allow both businesses to focus on their respective regional markets, leading to enhanced performance and value creation. The separation aims to create two leading sustainable packaging solutions companies, each with tailored investment and capital allocation strategies.
What financial adjustments has International Paper made in light of the separation?
In conjunction with the announcement, International Paper reported a pre-tax, non-cash goodwill impairment charge of $2.47 billion as of December 31, 2025, related to the EMEA Packaging reporting unit. This charge reflects the company’s evaluation of the fair value of its EMEA operations in light of the planned separation.
What is the background of International Paper’s recent acquisition?
International Paper, headquartered in Memphis, Tennessee, is a global producer of renewable fiber-based packaging and pulp products. The company completed the acquisition of London-based DS Smith in a $9.9 billion deal in January 2025, significantly strengthening its presence in the European market. The planned separation into two independent companies follows this strategic acquisition and aims to optimize operations and focus on regional market dynamics.
Key Features of the Split
| Feature | North American Business | EMEA Packaging Business |
|---|---|---|
| Company Name | International Paper | To be determined |
| Focus | Sustainable packaging solutions for North America | Sustainable packaging solutions for Europe, Middle East, and Africa |
| Pro Forma 2025 Net Sales | $15.2 billion | $8.5 billion |
| Pro Forma 2025 Adjusted EBITDA | $2.3 billion | $800 million |
| Planned Listing | Not specified | Primary listing on the London Stock Exchange and secondary listing in New York |
| Expected Completion of Separation | Within 12 to 15 months | Within 12 to 15 months |
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