Lone Star and Atlas Holdings consider $6bn takeover of former DS Smith business
Private equity firms Lone Star and Atlas Holdings are exploring bids for International Paper's European packaging business, potentially replacing plans for a London stock market listing, according to a report by the Financial Times.
Private equity firms Lone Star and Atlas Holdings are reportedly considering a $6 billion takeover of International Paper's European packaging business, formerly known as DS Smith, as per a Financial Times report. The two firms are the likely remaining bidders for the business, which could potentially replace a planned London stock market listing.
International Paper disclosed it had received unsolicited approaches and was in preliminary talks with potential buyers, while simultaneously pursuing its separation and public listing plan. International Paper had acquired DS Smith for £7.8 billion including debt in 2024, before announcing its intention to separate European and North American operations in January.
A sale for less than $6 billion would mark a significant drop in valuation since the acquisition, indicating pressure on packaging companies following a decline in demand and pricing from pandemic highs. International Paper recently took a nearly $2.5 billion goodwill impairment charge against its Europe, Middle East, and Africa business.
The company had intended to create a separately listed European packaging group, combining DS Smith and International Paper assets, with listings in both London and New York. Lone Star manages around $96 billion in committed capital, whereas Atlas Holdings manages over $16 billion and has previously acquired UK businesses like banknote printer De La Rue.
International Paper stated that discussions were still in the early stages, with no guarantee of a completed transaction.
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