IP Submits Regulatory Filings for Its Pending DS Smith Acquisition

Group 1: Acquisition Details - International Paper (IP) has submitted a definitive proxy statement to the U.S. Securities and Exchange Commission regarding its acquisition of DS Smith Plc (DITHF), which aims to enhance its corrugated packaging business in Europe and focus on sustainable packaging [1] - The acquisition is projected to be accretive to International Paper's earnings in the first year and is expected to generate at least $514 million in pre-tax cash synergies annually by the end of the fourth year post-closure [1] - The total value of the acquisition is £5.8 billion ($7.4 billion) on a fully diluted basis, with an enterprise value of £7.8 billion ($9.9 billion) [4] Group 2: Shareholder Meetings and Approvals - International Paper's shareholders will vote on the issuance of new shares at a special meeting on October 11, 2024, to approve the IP-DITHF combination [2] - DS Smith has scheduled its shareholder meeting for October 7, 2024, to seek approval for the combination [3] Group 3: Strategic Benefits - The merger will create a global leader in sustainable packaging solutions, significantly strengthening the corrugated packaging business in Europe and enhancing customer offerings [4] - The integration of both companies' mill and box networks will optimize supply chains in Europe and the U.S., driving significant synergies through improved integration and economies of scale [5] Group 4: Industry Context - The merger between International Paper and DS Smith follows another significant merger in the industry, the combination of WestRock Company and Smurfit Kappa Group Plc, which formed Smurfit Westrock Plc [6] - International Paper's shares have outperformed the industry, gaining 41.8% over the past year compared to the industry's growth of 22.1% [8]