Private equity firms reportedly explore deals for International Paper’s European packaging business
IP•Lone Star and Atlas Holdings are exploring separate bids for International Paper’s European packaging business, potentially valued at less than $6 billion, a report said. A sale would mean scrapping International Paper’s plan to spin off the business.
1. Potential bids
Lone Star and Atlas Holdings are exploring separate bids for International Paper’s European packaging business, potentially valued at less than $6 billion. International Paper shares were up about 7%.
2. Spin-off plan at risk
A sale would mean scrapping International Paper’s January plan to split into two publicly traded companies by spinning off the European packaging business. The company said the planned Europe, Middle East and Africa packaging company would combine regional operations originating from DS Smith and International Paper and was expected to list in London and New York.
3. Company context
International Paper completed its $7.2 billion buyout of DS Smith last year. The company has faced soft demand linked to weak consumer spending and the housing market, and in July it missed second-quarter sales expectations and trimmed the top end of its annual profit forecast while restructuring operations.
