MEMPHIS, Tenn. (News release) -- International Paper announced that the company has entered into exclusive negotiations with PALM Group of Germany after receiving an irrevocable offer for the purchase of five corrugated box plants in Europe: (i) three plants in Normandy, France (namely, one box plant in Saint-Amand, one box plant in Mortagne, and one sheet plant in Cabourg); (ii) one box plant in Ovar, Portugal; and (iii) one box plant in Bilbao, Spain. Upon completion of the required French works council consultation and/or employee information processes, the parties expect to enter into a definitive share purchase agreement. The closing is expected by the end of the second quarter of 2025.

"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," said International Paper Chairman and CEO Andy Silvernail. "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."

The sale of these plants was agreed to with the European Commission as a remedy for IP's acquisition of DS Smith Plc, as published on the Commission's website on January 24, 2025. The conclusion of the divestment is subject to the European Commission's approval of the proposed purchaser.

As a result of this disposal, IP will have satisfied all of its obligations towards the European Commission in connection with the acquisition of DS Smith Plc.