DS Smith Plans Q1 2027 Spinoff From International Paper With 14 Mills and 180 Sites

International Paper plans to separate its European business as DS Smith by the first quarter of 2027, executives said at a capital markets day, with the standalone company holding 14 paper mills and approximately 180 packaging sites. Packaging Dive reported the timeline.

DS Smith is a London-based fibre-based packaging, paper and recycling company serving customers across 30 EMEA countries. International Paper is the Memphis, Tennessee-based owner that acquired DS Smith in January 2025.

How the International Paper Split Is Structured

International Paper announced in January 2026 that it would divide into two independent companies. The legacy North American assets of both businesses will sit inside International Paper, while the legacy European assets will form DS Smith. International Paper said on November 3, 2026 that the separation of its EMEA packaging business is on track to complete within or ahead of the initial 12-15 month timeline, according to The future of trading.

Executives did not signal whether International Paper would sell the London-based spinoff, after the company disclosed in recent weeks that unsolicited bids had cropped up. Tim Nicholls, president of DS Smith and widely expected to become its CEO after the split, described the work as combining the strengths of both organizations. "How do we combine the best from both and create a better organization?" Nicholls said.

The optimization has involved site closures, workforce reductions and strategy changes since the January 2025 acquisition. DS Smith is shifting where approximately 13% of the product volumes it brings to market are produced within its network. "We haven't simply focused on improving the business we have. We have fundamentally redesigned our business to make it stronger, simpler and more competitive," said Ana Soldo, managing director for East EMEA.

DS Smith's Cost Savings and Volume Targets

Cost inflation continues to stress margins and the European market remains soft. DS Smith executives anticipate lower EBITDA in 2026 and project financial benefits in 2027, including from announced price increases, with a target of 1% to 2% volume growth in 2027. Nicholls said cost-saving opportunities ahead are likely to total 200 million euros.

Legacy DS Smith completed 17 acquisitions in the 10 years before International Paper bought it in 2025. Executives do not expect any mergers or acquisitions for at least two years following the spinoff, with the near- to mid-term focus on organic growth such as facility upgrades.

DS Smith's Expansion Before the Separation

According to akta.pro company records, International Paper's acquisition of DS Smith was valued at £5.8 billion in January 2025. The same records list a planned spin off for January 2027, in which International Paper would de-merge its Europe, Middle East and Africa division, largely made up of the DS Smith business, through a dual listing on the London and New York stock exchanges.

The records also show DS Smith investing about €34 million to upgrade three Greek packaging facilities, targeting a 30% production capacity increase, and committing up to DKK 100 million, about €13 million, for a new rotary die-cutter line at Grenaa, Denmark, adding up to 15 million m² of annual corrugated capacity for Nordic customers.

Capital Markets Day and Earlier DS Smith Work

DS Smith leaders hosted a Capital Markets Day on November 3, 2026 in London to present the standalone business and its financial targets, Investegate reported.

In September 2026, Accenture and osapiens helped DS Smith trace EUDR-relevant materials across its EMEA supply chain, covering over 250 plants in more than 30 countries, Stock Titan reported. In August 2026, DS Smith partnered with Vig Pak LLC to launch Brrr Box, a patented corrugated cardboard cooler positioned as a sustainable alternative to Styrofoam, Waste 360 reported.

What Comes Next for DS Smith

International Paper said the separation is on track to complete within or ahead of the initial 12-15 month timeline, per The future of trading. DS Smith executives said the transformation efforts will continue in the coming months. "I don't think in my 40 years I've seen another company having the courage to take such an impressive transformation at once, and especially not in such a short period of time," said Stefano Rossi, CEO of packaging at DS Smith.