International Paper has agreed to acquire DS Smith in a deal valued at £5.8 billion. The transaction, announced in April 2025, is structured as an all-stock exchange, with DS Smith shareholders set to receive 0.1285 shares of International Paper for each DS Smith share.
This deal will bring together two major players in fiber-based packaging. International Paper, based in the U.S., has a strong footprint in North America, while DS Smith has operations across Europe. The combined company is expected to offer broader service and product coverage to customers on both continents.
Mark Sutton, Chairman and CEO of International Paper, said:
“Bringing together International Paper and DS Smith is a logical next step in our strategy. Together, we will be better positioned to serve customers across attractive and growing markets.”
DS Smith Chairman Geoff Drabble commented:
“This combination provides DS Smith shareholders with an attractive valuation and the opportunity to participate in the value creation of the combined group.”
The companies estimate that combining their operations will save $514 million annually by the end of the fourth year. These savings are expected to come from shared resources and operational efficiencies, though no detailed plans about job impacts or integration timelines have been shared yet.
This acquisition also marks a shift in global packaging, reflecting rising demand for paper-based solutions, especially as companies move away from plastic packaging.
The deal still requires approval from regulators and shareholders. If cleared, it will create one of the largest global companies focused solely on packaging made from recycled and renewable materials.