DS Smith International Paper Deal Closes Successfully

The DS Smith International Paper deal has officially closed, marking a significant milestone for both companies. The acquisition was announced in 2021 and has now been completed.

This deal will create a leading global packaging company with a strong presence in Europe, North America, and South America. DS Smith will now have a more extensive portfolio of products and services.

The combined entity will have a strong presence in the paper and packaging industry, with a significant market share in the US and Europe.

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The deal between International Paper and DS Smith was completed on January 31, 2024, after being approved by the requisite majority of DS Smith shareholders on October 7, 2024.

The acquisition was implemented through a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. This means that the entire issued and to be issued share capital of DS Smith is now owned by International Paper UK Holdings Limited.

Geoff Drabble, chair of DS Smith, praised the combination, saying it creates a truly international sustainable packaging solutions leader that is well positioned in attractive and growing markets across Europe and North America.

The deal is finally closed. International Paper has completed its acquisition of DS Smith, a London-headquartered packaging giant.

The acquisition was initially agreed upon in April, and the boards of both companies sanctioned the scheme of arrangement in January. The scheme became effective on January 31st.

International Paper will now issue 0.1285 of new shares of common stock for each ordinary share of DS Smith, resulting in the issuance of approximately 179,847,780 new shares of International Paper common stock.

This acquisition creates a truly international sustainable packaging solutions leader, with a differentiated geographic footprint and a unparalleled suite of sustainable packaging products and services.

Geoff Drabble, chair of DS Smith, has stepped down from the board, along with six other directors, while three new members have been appointed to the board.

The new shares of International Paper common stock will begin trading on the New York Stock Exchange tomorrow under the symbol 'IP', and on the London Stock Exchange under the symbol 'IPC'.

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In the context of the International Paper Deal, it's crucial to decide whether to react or anticipate.

International Paper's acquisition of Smurfit Kappa's European corrugated packaging business in 2020 was a significant move, which set the stage for further consolidation in the industry.

Reacting to market trends can be tempting, but it's often better to anticipate changes in the market.

The deal was valued at approximately $3.9 billion, which is a substantial investment in the industry.

Anticipating market shifts can help businesses stay ahead of the curve and make more informed decisions.

However, International Paper's experience with the deal suggests that reacting to market trends can also be beneficial.

The company's ability to adapt to changing market conditions has been a key factor in its success.

The US Tariffs Impact is a crucial consideration for DS Smith, given its global operations and significant investments in various countries. DS Smith employs over 30,000 employees across more than 30 countries.

The company's recent investment of €17.6m ($19.7m) to enhance its box plant in Korinthos, Greece, highlights its commitment to expanding its operations and improving services.

Financial terms of the DS Smith and International Paper merger are not disclosed, but the offer valued DS Smith at $7.22bn.