Finance
Packaging firm International Paper to split into two to sharpen North America focus
Published by Global Banking and Finance Review
Posted on January 29, 2026
2 min readLast updated: January 29, 2026
Home > Finance > Packaging firm International Paper to split into two to sharpen North America focus
Quick Summary
International Paper plans to split into two companies, spinning off its European packaging business. The separation is expected to complete in 12-15 months.
International Paper to Separate into Two Companies for North American Focus
International Paper's Strategic Split
Jan 29 (Reuters) - International Paper said on Thursday it would split into two publicly traded companies by spinning off its European packaging business, aiming to streamline its operations and boost productivity across North America.
The paper and packaging producer said the move would aid earnings and strengthen cash flow. Shares of the company, which has a market capitalization of $21.91 billion, rose about 3% in premarket trading.
International Paper, accounting for roughly one-third of the North American corrugated packaging market, completed a $7.2 billion buyout of London-based rival DS Smith last year and has since shed assets in Europe tied to the deal.
Details of the Split
The split would leave International Paper with its North America business, which includes the company's existing operations and the assets acquired from DS Smith.
The new Europe, Middle East and Africa packaging company will consist of the combined operations that originated from both DS Smith and International Paper in the region.
Leadership Changes
International Paper said it plans to retain a meaningful ownership stake in the new company, which is expected to be spun off within 12 to 15 months.
Andy Silvernail will remain chairman and CEO of the North America-focused International Paper, while DS Smith President Tim Nicholls will lead the new publicly traded company.
Market Conditions and Financial Impact
The break up comes at a time when demand for box shipments in key regions such as North America and Europe has slowed, reflecting cautious consumer spending, weak housing market and uncertainties stemming from tariffs and other trade policies.
International Paper also posted an adjusted loss of 8 cents per share during the fourth quarter ended December 31, compared with a 38-cent profit a year earlier, hurt by impairment charges related to its business restructuring.
(Reporting by Savyata Mishra in Bengaluru; Editing by Jonathan Ananda and Shilpi Majumdar)
Key Takeaways
- •International Paper will split into two publicly traded companies.
- •The split involves spinning off its European packaging business.
- •Shares rose by 5% in premarket trading following the announcement.
- •The separation is expected to be completed in 12-15 months.
- •Demand for box shipments has slowed due to economic factors.
Frequently Asked Questions about Packaging firm International Paper to split into two to sharpen North America focus
1What is a spin-off?
A spin-off is a corporate action where a company creates a new independent company by selling or distributing new shares. This often occurs to enhance shareholder value.
2What is divestiture?
Divestiture refers to the process of selling off a subsidiary or business unit. Companies often divest to focus on core operations or raise capital.
3What is packaging in the context of business?
Packaging refers to the technology and design of enclosing or protecting products for distribution, storage, sale, and use. It plays a crucial role in branding and marketing.
4What is market reaction?
Market reaction refers to how investors respond to news or events related to a company, often reflected in stock price movements.
5What are demand trends?
Demand trends indicate the patterns in consumer demand for products or services over time, influenced by various factors such as market conditions and consumer preferences.
