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04/2024

DS SMITH acquired by INTERNATIONAL PAPER COMPANY

UNITED KINGDOM Chemicals & Materials / Packaging & Containers / Paper & Cardboard EV 3b - 100b GBP

Context

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, which reported an EBITDA margin of in 2024, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Industry & Manufacturing sector (11.6x).

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Target

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.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2024
2023

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REFERENCES

Valuation range: EV 3b - 100b GBP

Revenue range: 5b - 100b GBP

EBITDA range: 750M - 1.3b GBP

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of DS SMITH by INTERNATIONAL PAPER COMPANY are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: ds smith

Acquirer: international paper company