International Paper is evaluating unsolicited approaches from potential buyers for its Europe, Middle East and Africa (EMEA) Packaging Business, opening up a possible sale as an alternative to the planned spin-off of the division.

On 15 October 2026, the US-based paper and packaging group confirmed that it was in discussions with potential bidders, while stressing that the process remains at an early stage.

The company said it is pursuing the planned spin-off and evaluating a potential sale in parallel. It cautioned that there is no certainty that a transaction will be agreed or completed, and that the ultimate timing and structure of the proposed separation remain uncertain.

Private equity firms reportedly explore bids

According to the Financial Times, private equity firms Lone Star and Atlas Holdings are exploring separate bids for the EMEA business, with potential valuations reportedly below $6 billion.

International Paper did not identify the interested parties or disclose a valuation in its announcement.

The potential sale comes as International Paper prepares to separate its regional operations into two independent, publicly traded companies. The EMEA business would combine the region's legacy DS Smith operations with International Paper's existing assets, while the North American business would retain operations from both groups in that region.

Planned spin-off would create an independent DS Smith

International Paper announced its separation plan on 29 January 2026, following its acquisition of UK-based DS Smith in 2025 for approximately $7.2 billion.

Under the proposed structure, the EMEA Packaging Business would become an independent company, DS Smith plc, with a planned listing on the London Stock Exchange and a Level II American Depositary Receipt (ADR) program on the New York Stock Exchange.

On 14 October, International Paper reiterated the proposed listing structure and announced a capital markets event dedicated to the planned separation.

The company had initially expected the spin-off to take place within 12 to 15 months of its January announcement, but its latest statement makes clear that the ultimate timing and structure remain uncertain.

The EMEA business operates across Europe, the Middle East and Africa and forms a significant part of International Paper's combined packaging operations.

The company is scheduled to hold its “DS Smith – Capital Markets Day” on 3 November 2026 to discuss the proposed independent business.