Two private equity firms, Lone Star and Atlas Holdings, are exploring multibillion-dollar bids for International Paper's European packaging business, raising the possibility that the US group could abandon its plan to float the division on the London stock market. According to people familiar with the matter, the two firms are the final suitors left after other private equity firms dropped out.
The bids may value the business at less than $6bn (£4.5bn), a steep fall from 2024, when International Paper agreed to buy DS Smith, then a FTSE 100 company, for £5.8bn or £7.8bn including debt. The sources cautioned that no decisions have been taken and that International Paper could still proceed with a listing. Packaging companies have faced pressure since prices peaked in 2022, and the company booked a nearly $2.5bn goodwill impairment charge on its Emea business in its latest annual results.
International Paper plans to split into two public companies, with a European packaging unit combining DS Smith and International Paper assets, to be listed in London and New York between January and April 2027. The company said this week it had made "significant progress" preparing the Emea business for standalone life, and will be renamed DS Smith, with a capital markets day planned for November.
A sale rather than a float would be another loss for the London market, which is struggling to attract new listings as many companies are taken private. As of July, the value of bids for London-listed companies was 27 times greater than the value of new entrants to the market in 2026. Lone Star, with about $96bn of committed capital, recently agreed to sell its lender IKB to Crédit Agricole, while Atlas manages over $16bn and has been active in the UK, including its acquisition of banknote printer De La Rue. Neither firm nor International Paper commented.
Source: Financial Times Companies · Summarized by HeadlinesBriefing