01—Abstract
Summary
Summary of the 8-K filed April 14, 2025. Cited figures are marked; the original filing is the authoritative source.
International Paper Company issued a press release on April 14, 2025, announcing that three of its indirectly owned subsidiaries have entered into exclusive negotiations with PALM Group of Germany to divest five European corrugated box plants.
The plants are three in Normandy, France (one box plant in Saint-Amand, one box plant in Mortagne, and one sheet plant in Cabourg), one box plant in Ovar, Portugal, and one box plant in Bilbao, Spain. The company received an irrevocable offer from PALM, and the parties expect to enter into a definitive share purchase agreement after the required French works council consultation and/or employee information processes are completed. The closing is expected by the end of the second quarter of 2025.
The divestiture is a remedy agreed with the European Commission in connection with International Paper's acquisition of DS Smith Plc, as published by the Commission on January 24, 2025. Completion remains subject to the European Commission's approval of the proposed purchaser. The company states that upon completion of this disposal, it will have satisfied all of its obligations to the European Commission related to the DS Smith acquisition.
The filing does not disclose purchase price or proceeds. The press release notes that the company cannot predict with certainty whether or when negotiations will be successful, whether or when the transaction will close, or the impact of foreign exchange fluctuations or purchase price adjustments on anticipated proceeds. Investors should refer to the company's Form 10-K for the year ended December 31, 2024 for risk factors.
02—Key points
Key Highlights
- International Paper entered exclusive negotiations with PALM Group of Germany to sell five European corrugated box plants after receiving an irrevocable offer.
- The five plants are located in Normandy, France (three facilities), Ovar, Portugal, and Bilbao, Spain.
- The divestiture satisfies regulatory commitments made to the European Commission in connection with the acquisition of DS Smith Plc.
- A definitive share purchase agreement is expected after French works council consultation and/or employee information processes are completed.
- Closing is expected by the end of the second quarter of 2025, subject to European Commission approval of the purchaser.
- Upon completion, International Paper will have satisfied all of its remedy obligations to the European Commission related to the DS Smith acquisition.
- The filing does not disclose the purchase price or expected proceeds from the sale.
03—Questions
Frequently Asked Questions
What assets are being sold?
Five corrugated box plants in Europe: three in Normandy, France (box plants in Saint-Amand and Mortagne, and a sheet plant in Cabourg), one box plant in Ovar, Portugal, and one box plant in Bilbao, Spain.
Who is the buyer?
PALM Group of Germany, described in the press release as a family-owned company headquartered in Aalen, Germany, with 5 paper mills and 29 corrugated box plants, and 2024 turnover of €2 billion.
Why is the company selling these plants?
The sale is a remedy agreed with the European Commission as a condition of International Paper's acquisition of DS Smith Plc, as published on January 24, 2025.
When is the transaction expected to close, and what could prevent it?
Closing is expected by the end of the second quarter of 2025. It remains subject to completion of French works council consultation and/or employee information processes, signing of a definitive share purchase agreement, and European Commission approval of the proposed purchaser.
What risks does the company identify?
The company states it cannot predict with certainty whether or when negotiations will succeed or the transaction will close, and that foreign exchange fluctuations or purchase price adjustments could affect anticipated proceeds. It refers investors to its Form 10-K for the year ended December 31, 2024 for further risk information.
04—Continue