International Paper (IP), a sustainable packaging solutions provider, has entered into exclusive negotiations with Germany’s PALM Group to divest five corrugated packaging plants in Europe.
This follows the receipt of an irrevocable offer for the acquisition of the plants.
The divestment is linked to regulatory commitments arising from International Paper’s purchase of DS Smith.
Three of the five facilities are located in Normandy, France. These include a box plant in Saint-Amand, another in Mortagne, and a sheet plant in Cabourg. The remaining two are based in Ovar, Portugal, and Bilbao, Spain.
The sale process is subject to consultation with French works councils and employee information procedures.
Upon completion of these steps, the parties expect to sign a definitive share purchase agreement.
The transaction is anticipated to close by the end of the second quarter (Q2) of 2025.
This divestiture was agreed by IP with the European Commission as part of the merger conditions.
Approval of the proposed buyer by the commission remains a condition for completion.
PALM is a privately owned company headquartered in Aalen, Germany. It is involved in the production of containerboard, graphic paper, and corrugated packaging.
As of 2024, it operated five paper mills and 29 corrugated plants, reporting revenue of €2bn ($2.2bn).
International Paper chair and CEO Andy Silvernail said: “Finding the right buyer for these five facilities has been a top priority for our team since the completion of the acquisition of DS Smith, and I’m pleased that we have found one in PALM.
“We are grateful for the many contributions the team members at these five plants have made to the company and know they will continue to be successful and deliver value with their new owners.”
In February this year, International Paper announced that it would shut down four of its US facilities by the end of this month.
