International Paper said on Thursday it will divide into two publicly listed companies by carving out its European packaging operations into a separate business. The company reported that shares rose roughly 5% in premarket trading following the announcement.
The packaging and paper producer, which accounts for about one-third of the North American corrugated packaging market, completed a major expansion into Europe last year when it purchased London-based rival DS Smith for $7.22 billion. That acquisition has been followed by a series of divestitures and asset sales across Europe that the company says are connected to the deal.
Management pointed to a slowdown in demand for box shipments in important regions such as North America and Europe. The company attributed that softer demand to more cautious consumer spending, a weak housing market and uncertainties tied to tariffs and other trade policies. In outlining the corporate separation, International Paper said it expects the process to take 12-15 months to complete.
For investors assessing the company, the firm’s public statement establishes a timeline and links the strategic move to recent activity in Europe. The combination of a sizable acquisition, follow-on divestitures and a planned split creates a sequence of corporate actions that will reshape the company’s footprint and investor profile over the coming year.
Another element cited in the original release referenced an AI-driven stock screening product that evaluates International Paper using more than 100 financial metrics, and noted past picks the service highlighted. The statement included specific performance figures for two prior selections and also referenced a promotional sale. Those claims were presented in the company’s broader investor-facing materials.
The planned separation, the company said, will result in two publicly traded entities: one focused on the remaining business and the other centered on European packaging operations. Beyond the stated 12-15 month timeline, the company did not provide additional detail in this announcement about the mechanics of the spin-off or the names and standalone capital structures of the resulting entities.
Investors and market observers will be watching the progress of the European divestitures tied to the DS Smith acquisition as the separation proceeds, and monitoring how demand trends in North America and Europe influence operating performance across both companies.