International Paper is in discussions with prospective bidders regarding the potential sale of its EMEA packaging business.
In a statement, the company said that its consideration of “unsolicited inbound inquiries” remains at an early stage, and that any sale is not yet a certainty.
A report in the Financial Times identifies the private equity firms Lone Star and Atlas Holdings as organisations that are considering “multi-billion dollar bids” for the business – adding that the two firms are the last remaining suitors following the exit of other interested parties. The FT’s sources say that remaining bids could value the EMEA business at less than €5.5 billion.
Earlier this year, International Paper announced its intention to split its entire business into two separate, independent, publicly-listed entities to cover the North American and EMEA markets – with its previously-acquired DS Smith assets getting split between the two.
At that time, the company’s chairman and CEO, Andy Silvernail, said: “Taking this swift, decisive action now will enable both businesses to reach best-in-class performance and maximize long-term value creation through enhanced focus on their unique opportunities and targeted investment approaches.”
However, it is now understood that IP plans to progress plans for the separation whilst continuing to evaluate a potential sale in the meantime.
Shares in International Paper climbed by about 8% off the back of the news, according to Reuters, which also reports that the company failed to hit sales expectations in July and “trimmed the top end of its annual profit forecast while it restructured operations”.
The European Commission has published new guidance to clarify Extended Producer Responsibility (EPR) obligations for small businesses operating across Member
