International Paper and DS Smith have reached an agreement on the terms of a recommended all-share combination. Under the terms, DS Smith shareholders are entitled to receive 0.1285 new International Paper shares for each DS Smith share, valuing the target at 415 pence per share (a 47.7% premium over the undisturbed share price). The transaction creates a truly global leader in sustainable packaging, with industry-leading positions in both Europe and North America. The strategic rationale is built on optimizing the combined mill network and supply chains, with expected pre-tax cash synergies of at least $514 million (£413 million) annually by the end of the fourth year. Upon completion, DS Smith shareholders will own approximately 33.7% of the combined entity. To facilitate the merger, International Paper will seek a secondary listing on the London Stock Exchange. The deal is expected to be EPS accretive in year one and is slated to become effective in the fourth quarter of 2024, subject to regulatory and shareholder approvals.

DS Smith is a leading European provider of sustainable fiber-based packaging solutions, specializing in corrugated packaging. The company’s business model is centered on a "customer-first" approach, driving growth through innovation in high-quality packaging and superior service levels. DS Smith has established an extensive reach across Europe, positioning itself as a key partner for a broad set of customers in attractive and growing end-markets. Its value proposition focuses on renewable and recyclable materials, aligning with the global transition toward sustainable packaging. By the time of the transaction, DS Smith had achieved significant scale through its dedication to circular economy principles and its ability to serve complex supply chains across the continent.