International Paper announces the creation of two listed companies, aimed at optimizing its packaging activities in North America and EMEA.
International Paper plans to split into two separate entities. The first, which will retain the International Paper name, will group together all North American activities, while the second will concentrate on packaging in Europe, the Middle East and Africa (EMEA). According to Andy Silvernail, President and CEO of International Paper: « Over the past year, we have created two regional powerhouses with significant scale, strong customer relationships, leading brands and talented teams». »Indeed, the two companies will operate in distinct market environments and at different stages of transformation.
Objectives of the demerger
This separation is intended to maximize value creation for shareholders. International Paper intends to adopt a targeted capital allocation strategy to strengthen its leadership position in sustainable packaging. The new North American entity will continue to provide packaging solutions tailored to the needs of its customers, particularly in industrial sectors such as food, beverages and e-commerce.
" The two companies operate in distinct market environments and are at different stages of transformation. The next step is to create two independent, regionally-focused companies »explains Andy Silvernail. International Paper is committed to investing in growth, productivity and innovation, while maintaining a strong balance sheet.
Development of EMEA Packaging
The EMEA Packaging division will be built specifically to become a leader in sustainable packaging solutions, responding to evolving market demands. Present in 30 countries, this entity will seek to stimulate innovation and continuously improve its services. « The new company will have a strong balance sheet and a dividend strategy that will enable it to ensure high operational efficiency. »says the company.
The demerger is expected to be finalized within 12 to 15 months, subject to the usual conditions, reflecting the strategic importance of this transaction for International Paper.
