International Paper to Create Two Independent Public Companies

Rhea-AI Summary

International Paper (NYSE: IP) announced plans to separate its combined EMEA Packaging business into a new, independent publicly traded company and retain a focused International Paper for North America. The spin-off is expected to complete in 12–15 months, with listings on the London and New York stock exchanges.

The move creates two regionally focused packaging leaders, keeps senior leadership in place for North America, and intends to retain a meaningful ownership stake in the new EMEA business.

Positive

• Planned spin-off to create two focused public companies for North America and EMEA
• Separation timeline set at a concrete 12–15 months
• New EMEA Packaging entity will operate in 30 countries
• Target dual listing on the London Stock Exchange and New York Stock Exchange

Negative

• No assurance on the ultimate timing or structure of the proposed separation
• Whether the spin-off will be tax-free for U.S. federal income tax purposes is uncertain
• Key capital-structure and leadership details remain undisclosed pending future announcements

Key Figures

Completion timeline: 12–15 months Countries in EMEA: 30 countries Webcast time: 10 a.m. ET +5 more

8 metrics

Completion timeline 12–15 months Expected timeframe to complete the separation

Countries in EMEA 30 countries EMEA Packaging operating footprint

Webcast time 10 a.m. ET Start time of earnings and separation webcast

Webcast time (CT) 9 a.m. CT Central Time start for webcast

Conference ID 4020847 Teleconference access code for the webcast

Replay duration 90 days Period audio-only replay will be available

Performance system 80/20 International Paper’s transformation and allocation framework

Short interest 9.81% Pre-news short interest as share of float

Market Reality Check

Price: $39.00 Vol: Volume 14,249,234 is 2.29...

high vol

$39.00 Last Close

Volume Volume 14,249,234 is 2.29x the 20-day average of 6,226,077, signaling elevated interest ahead of the separation news. high

Technical Shares at $41.49 are trading below the 200-day MA at $45.27, indicating a pre-news downtrend versus the planned spin-off narrative.

Peers on Argus

While IP showed a -1.68% move pre-announcement, key peers like SW (-1.3%), AMCR ...

While IP showed a -1.68% move pre-announcement, key peers like SW (-1.3%), AMCR (-1.34%), PKG (-1.09%), BALL (-1.07%) and AVY (-1.04%) were also down, but momentum scanners did not flag a coordinated sector move.

Historical Context

5 past events · Latest: Jan 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 23	Business sale completion	Neutral	-0.1%	Completion of Global Cellulose Fibers sale to American Industrial Partners.
Jan 23	Asset divestiture	Positive	-0.1%	Completion of GCF sale for <b>$1.5B</b> plus <b>$190M</b> preferred equity.
Jan 16	Dividend declaration	Positive	-3.9%	Quarterly dividends including <b>$0.4625</b> per common share and <b>$1.00</b> preferred.
Dec 17	Earnings scheduling	Neutral	-0.2%	Announcement of Q4 and full-year 2025 earnings date and 2026 earnings calendar.
Nov 14	Facility closures	Negative	-1.4%	Closures of Compton and Louisville packaging facilities as part of footprint streamlining.

Pattern Detected

Recent news often saw mildly negative or flat price reactions, including to asset sales and dividend declarations, suggesting limited immediate upside response even to shareholder-friendly actions.

Recent Company History

Over the past few months, International Paper has executed significant portfolio and footprint changes. It agreed to sell and then completed the divestiture of its Global Cellulose Fibers business, with consideration including $1.5 billion cash and $190 million preferred stock. The company declared a quarterly common dividend of $0.4625 per share for the period ending Mar 31, 2026, and announced multiple plant closures under its 80/20 strategy. An earnings date was set for Jan 29, 2026. The new spin-off plan builds on this ongoing transformation.

Market Pulse Summary

This announcement outlines a plan to separate International Paper into two independent, regionally f...

Analysis

This announcement outlines a plan to separate International Paper into two independent, regionally focused packaging companies in North America and EMEA over 12–15 months. It extends the company’s 80/20 transformation, following recent divestitures and footprint rationalization. Key factors to watch include regulatory approvals, capital structure details, leadership execution on regional strategies, and how the new entities balance dividend policy, investment-grade balance sheets, and growth-focused capital allocation.

Key Terms

spin-off, registration statement, prospectus, dividend policy, +3 more

7 terms

spin-off financial

"The separation is expected to be structured as a spin-off of the combined EMEA..."

A spin-off happens when a company creates a new, independent business by separating part of itself, like splitting off a division into its own company. This often happens so the new company can focus better on its own goals or attract different investors. It matters because it can lead to more growth opportunities and clearer focus for both companies.

registration statement regulatory

"including... the filing and effectiveness of a registration statement with the U.S...."

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

prospectus regulatory

"and the publication of a prospectus approved by the U.K. Financial Conduct Authority."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

dividend policy financial

"The new company will have a robust investment grade balance sheet and dividend policy..."

A dividend policy is a company’s rule for how it shares profits with shareholders versus keeping them to grow the business. Think of it like a household deciding each month how much to spend, save, or invest: the policy determines how much cash investors can expect as regular income, how stable that income is likely to be, and what the company prioritizes—paying returns now or funding future growth. Investors use it to gauge income reliability and management’s confidence in the business.

investment grade balance sheet financial

"The new company will have a robust investment grade balance sheet and dividend policy..."

A strong, "investment grade" balance sheet means a company holds enough high-quality assets, low debt, and ready cash so credit agencies would rate its debt as investment grade (commonly BBB- / Baa3 or better). For investors, it signals lower risk of bankruptcy or forced asset sales and usually means the company can borrow more cheaply and withstand shocks—think of it like a household with steady income, savings, and a good credit score.

London Stock Exchange financial

"The new company is expected to be listed on both the London Stock Exchange and..."

A major regulated marketplace in London where stocks, bonds and other securities are bought and sold, the London Stock Exchange acts like a large, organized auction house that matches buyers and sellers and records current prices. It matters to investors because it provides liquidity and reliable price information, a platform for companies to raise capital, and rules that help protect market integrity — all of which affect portfolio value and trading opportunities.

New York Stock Exchange financial

"The new company is expected to be listed on both the London Stock Exchange and the New York..."

The New York Stock Exchange is a marketplace where people buy and sell shares of publicly traded companies. It functions like a busy trading hub, helping investors transfer ownership of company parts and providing a way to gauge how well businesses are doing. Its role is vital because it offers liquidity and transparency, making it easier for investors to buy and sell investments confidently.

AI-generated analysis. Not financial advice.

Accelerating path to profitable growth by building two scaled, regional packaging solutions leaders in North America and EMEA

MEMPHIS, Tenn., Jan. 29, 2026 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC), a leader in sustainable packaging solutions, today announced its plan to create two independent, publicly traded companies: International Paper will be comprised of its current business in North America including both legacy IP and DS Smith assets, and the EMEA Packaging business will be comprised of both legacy DS Smith and IP assets in EMEA. The separation will create two leading sustainable packaging solutions companies, each with focused management teams and business models, tailored investment and capital allocation strategies, and compelling financial profiles.

International Paper is focused on maximizing value for shareholders through its 80/20 performance system and region-specific strategies. Combining International Paper and DS Smith enabled the company to significantly strengthen the businesses in both North America and EMEA. Over the past year, the 80/20 approach enabled the company to recognize significant regional benefits, improve customer delivery and strengthen its relative supply position in both geographies.

"During the past year, we have created two regional powerhouses with scale, strong customer relationships, leading brands and talented teams," said International Paper Chairman and CEO Andy Silvernail. "The two businesses operate in distinct market environments and are at different stages of their transformation. We have learned a lot about how to create value in each region. The next right step in our transformation journey to achieve full value creation potential is to create two independent, regionally focused companies. Taking this swift, decisive action now will enable both businesses to reach best-in-class performance and maximize long-term value creation through enhanced focus on their unique opportunities and targeted investment approaches."

International Paper will Accelerate Value Creation Across North America
The separation will provide International Paper with the focus and targeted capital allocation strategy to strengthen its position as a leading sustainable packaging company in North America, focused on customers and leading on innovation, with an advantaged cost position. Comprised of IP's Packaging Solutions North America business, including both legacy IP and DS Smith assets, International Paper will continue to serve a wide range of industries with sustainable packaging solutions, designed to protect products, enhance supply chains and support customer sustainability goals.

After separation, International Paper will be even more focused, providing an even greater ability to accelerate its transformation strategy across North America. The company has already taken bold actions to streamline its footprint, decentralize operations, and optimize asset networks by deploying its lighthouse model across North America. IP will build on its progress by making investments that drive innovation and service, enhance quality, and bolster productivity.

Continued progress in North America will enable the company to compound earnings, grow cash flows, and deliver superior shareholder returns. Following the separation, International Paper intends to accelerate investment toward organic growth, productivity and disciplined strategic acquisitions, while maintaining a strong, investment-grade balance sheet. 

Andy Silvernail will continue to serve as Chairman and CEO of International Paper, Lance Loeffler will remain Chief Financial Officer, and Tom Hamic will remain Executive Vice President and President, Packaging Solutions North America. 

EMEA Packaging will Thrive with Increased Focus and Targeted Investment
EMEA Packaging will accelerate its path to being the leading European sustainable packaging solutions company, defined by best-in-class innovative customer solutions, high-performance operations, and sustainability leadership. Built specifically for EMEA, the standalone business will be a leading provider of innovative, sustainable packaging solutions focused on meeting evolving market demands, helping customers achieve their sustainability goals, and reallocating resources to drive innovation and enhanced service. Operating in 30 countries across EMEA, the company will be comprised of IP's current Packaging Solutions EMEA business, operating as DS Smith, which includes the combination of legacy DS Smith and IP assets. 

During the past year, EMEA Packaging has begun executing its focused 80/20 roadmap to optimize its footprint, structurally reduce costs, extend its leadership in product and service innovation, and drive targeted reinvestments. Throughout 2026 and prior to the separation, International Paper plans to continue to invest in EMEA to further advance its 80/20 plans and prepare the business to separate with higher margins and improving free cash flow.

As an independent company, EMEA Packaging will be equipped to tailor its strategy and capital allocation to the specific characteristics of EMEA. The business will continue to execute its 80/20 roadmap while focusing on meeting evolving market demands, helping customers achieve their sustainability goals, and reallocating resources to drive innovation and enhanced service. The new company will have a robust investment grade balance sheet and dividend policy to enable strong operational delivery and the flexibility to engage in high-return organic and inorganic investments.

Following the separation, Tim Nicholls will serve as Chief Executive Officer of the new publicly traded company. Over the past year, Nicholls has served as Executive Vice President and President of DS Smith, an International Paper company. Nicholls and the rest of the EMEA leadership team, with deep collective industry and regional expertise, have led the integration and transformation of the combined EMEA business. Additionally, David Robbie is expected to serve as the Chairman of the Board of Directors of the new company in EMEA. Robbie served on the former DS Smith board as Senior Independent Director until joining the International Paper Board of Directors in 2025.

Transaction Details
The separation is expected to be structured as a spin-off of the combined EMEA Packaging business to shareholders. International Paper intends to retain a meaningful ownership stake in the new company. Whether the transaction will be tax-free to shareholders for U.S. federal income tax purposes will depend on the ultimate terms of the transaction, the amount of shares retained and other factors. The new company is expected to be listed on both the London Stock Exchange and the New York Stock Exchange.

The separation is expected to be completed in 12-15 months, subject to the satisfaction of certain customary conditions, including final approval by the IP Board of Directors as well as the filing and effectiveness of a registration statement with the U.S. Securities and Exchange Commission and the publication of a prospectus approved by the U.K. Financial Conduct Authority. No assurance can be provided regarding the ultimate timing or structure of the proposed separation or its eventual completion.

Additional details including capital structure and broader leadership team will be announced at a later date. 

Advisors
Jefferies served as lead financial advisor to International Paper. Evercore also served as financial advisor to International Paper. Wachtell, Lipton, Rosen & Katz served as legal counsel to International Paper.

Webcast
The Company will host a webcast today beginning at 10 a.m. ET (9 a.m. CT) to discuss the announcement as part of its 4Q/Full-Year 2025 earnings presentation. All interested parties are invited to listen to the webcast via the Company's website by clicking on the Investors tab and going to the Events & Presentations page at https://www.internationalpaper.com/investors/events-presentations. A replay of the webcast will also be on the website beginning approximately two hours after the call.

Parties who wish to participate in the webcast via teleconference may dial +1 (646) 307-1963 or, within the U.S. only, (800) 715-9871, and ask to be connected to the International Paper fourth quarter earnings call. The conference ID number is 4020847. Participants should call in no later than 9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be available for ninety days following the call. To access the replay, dial +1 (609) 800-9909 or, within the U.S. only, (800) 770-2030 and when prompted for the conference ID, enter 4020847.

About International Paper
International Paper (NYSE: IP; LSE: IPC) is dedicated to empowering customers, teammates, and shareowners to thrive by delivering innovative, sustainable packaging solutions for a changing world. As a trusted leader in corrugated packaging, we collaborate with partners across industries to protect what matters most—strengthening supply chains, advancing sustainability, and creating lasting value for our stakeholders. Discover more at internationalpaper.com.

Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as "expects," "anticipates," "believes," "estimates," "could," "should," "can," "forecast," "outlook," "intend," "look," "may," "will," "remain," "confident," "commit" and "plan" or similar expressions. These forward-looking statements reflect management's current views and are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied in these forward-looking statements. These risks and uncertainties include the risks that this planned separation of the Company's North America and EMEA operations into two independent public companies will not happen on a timely basis or at all, the Company's ability to achieve the desired outcome and realize the anticipated benefits from the separation and the potential uncertainty and disruption during the pendency of the separation. These forward-looking statements are also subject to the risks and uncertainties contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ("SEC") on February 21, 2025, and subsequent reports filed with the SEC. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations.

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SOURCE International Paper

FAQ

What is International Paper (IP) announcing on January 29, 2026 about a spin-off?

International Paper is separating its combined EMEA Packaging business into a new public company within 12–15 months. According to the company, the spin-off will create two regionally focused packaging leaders and is expected to list on both London and New York exchanges.

How will the proposed separation affect International Paper's North America business (IP)?

After the separation, International Paper will focus on its North America packaging operations with targeted capital allocation. According to the company, leadership for North America remains in place and the business will pursue organic growth, productivity and selective acquisitions.

Who will lead the new EMEA Packaging company after the spin-off of IP (NYSE: IP)?

Tim Nicholls is expected to serve as CEO of the new EMEA Packaging company after separation. According to the company, David Robbie is expected to serve as chairman and the current EMEA leadership team will continue to guide the business.

Will the spin-off of EMEA Packaging be tax-free for U.S. shareholders of IP?

Whether the transaction will be tax-free for U.S. federal income tax purposes is uncertain and depends on final terms. According to the company, tax treatment will hinge on the transaction structure, retained-share amounts and other factors.

What exchanges will the new EMEA Packaging company be listed on after International Paper's spin-off?

The new EMEA Packaging company is expected to be listed on both the London Stock Exchange and the New York Stock Exchange. According to the company, dual listing is planned but final listing details will be provided later.