Sustainable packaging solutions provider International Paper (IP) has completed its acquisition of DS Smith, a British multinational packaging business.
Under the terms of the acquisition, International Paper will issue approximately 179.8 million new shares of common stock.
This will be done by offering 0.1285 new shares for each DS Smith ordinary share. The new shares of International Paper common stock are expected to commence trading on the New York Stock Exchange in the US under the ticker ‘IP’ from tomorrow (4 February).
Additionally, the shares, including the new issuance, will be available for trading on the London Stock Exchange in the UK through a secondary listing under the symbol ‘IPC’.
The merger is anticipated to generate significant value for shareholders and establish the combined entity as a global leader in sustainable packaging solutions.
The focus will be on the growing and attractive markets of North America and Europe.
BofA Securities served as the exclusive financial advisor to International Paper while Skadden, Arps, Slate, Meagher & Flom provided legal counsel. Sidley Austin was engaged as the US antitrust legal advisor for IP in relation to the acquisition.
On the other side, DS Smith was advised by Goldman Sachs International, Citigroup Global Markets, and J.P. Morgan Securities. Legal advice was provided by Slaughter and May, with Sullivan & Cromwell acting as the US legal advisor for DS Smith.
IP chair and CEO Andrew Silvernail said: “The combination of International Paper and DS Smith will create the world's leading sustainable packaging company.
“With a differentiated geographic footprint and an unparalleled suite of sustainable packaging products and services, we will accelerate growth, improve profitability and serve our customers even better.”
IP made an all-share offer to acquire the shares of DS Smith in March last year.
Last month, IP anticipated EU approval for the £5.8bn ($7.12bn) deal.
"International Paper closes acquisition of DS Smith" was originally created and published by Packaging Gateway, a GlobalData owned brand.
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