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.
The two firms are understood to be the remaining potential buyers for the business, previously known as DS Smith, with offers potentially valuing the division at less than $6bn.
International Paper confirmed it had received unsolicited approaches and was holding preliminary discussions with prospective buyers, although it continues to pursue its proposed separation and public listing in parallel.
The US packaging group acquired DS Smith in a transaction valued at £7.8bn including debt in 2024, before announcing plans in January to separate its European and North American operations.
A sale at less than $6bn would represent a substantial reduction in valuation since the acquisition, reflecting pressure on packaging companies following a decline in demand and pricing from pandemic-era highs.
International Paper recently recorded a goodwill impairment charge of nearly $2.5bn against its Europe, Middle East and Africa business.
The company had planned to establish a separately listed European packaging group, incorporating DS Smith and International Paper assets, with listings in London and New York.
Lone Star manages approximately $96bn in committed capital, while Atlas Holdings manages more than $16bn and has previously acquired UK businesses including banknote printer De La Rue.
International Paper said discussions remained at an early stage, with no certainty that a transaction would be completed.
