International Paper Co nears completion of spin-off of DS Smith

International Paper Co on Tuesday said the separation of its European packaging arm as an independently listed company in London is on track with the 12 to 15 month timeline originally outlined back in January, suggesting it will be completed between December this year and March next year.

The Packing Solutions EMEA business of International Paper is mostly the result of the Memphis, Tennessee-based company's acquisition of London-based peer DS Smith PLC just two years ago. The newly independent company once again will be named DS Smith PLC, though it also will include legacy European assets of International Paper.

The two top leaders of DS Smith, Chief Executive Officer Tim Nicholls and Chief Financial Officer Vincent Bonnot, hosted a capital markets day on Tuesday, with Nicholls calling this a "significant milestone".

DS Smith will be listed on the London Main Market in the commercial companies category and also will have American depositary receipts on the New York Stock Exchange.

DS Smith provided updated guidance for 2026, stating adjusted earnings before interest, tax, depreciation and amortisation is expected to be EUR730 million to EUR780 million at a margin of 9.0% to 9.7%.

The newly independent company will take one-off cash costs of EUR120 million to EUR130 million, representing costs of the separation and stock market listing, as well as of cost reduction and restructuring efforts.

Looking further ahead, DS Smith aims to expand its adjusted Ebitda margin to a mid-teens percentage, while revenue growth is expected to be supported by volume growth ahead of economic growth.

International Paper shares were down 3.6% to 2,651.32 pence midday Tuesday in London.

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