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PCA/Greif Deal Continues Industry Trend of Consolidation
Article
4 min read

PCA/Greif Deal Continues Industry Trend of Consolidation

Packaging Corporation of America's $1.8 billion acquisition of Greif's containerboard business marks a significant consolidation move in the North American packaging industry. The all-cash transaction includes two mills with 800,000 tons capacity, seven CorrChoice sheet feeder locations, and one box plant, positioning PCA as the third-largest containerboard producer. Industry veterans will appreciate the strategic synergies: $60 million in pre-tax benefits within two years through operational efficiencies, improved integration, and reduced transportation costs. Combined with International Paper's DS Smith acquisition and Smurfit Westrock's merger, these three deals represent $20 billion in M&A activity, creating enhanced market consolidation and potential pricing power for the top three companies controlling 65% of regional containerboard capacity.

International Paper in Negotiations with PALM Group on Sale of Five European Corrugated Box Plants
Article
1 min read

International Paper in Negotiations with PALM Group on Sale of Five European Corrugated Box Plants

International Paper announced that the company has entered into exclusive negotiations with PALM Group of Germany after receiving an irrevocable offer for the purchase of five corrugated box plants in Europe: (i) three plants in Normandy, France (namely, one box plant in Saint-Amand, one box plant in Mortagne, and one sheet plant in Cabourg); (ii) one box plant in Ovar, Portugal; and (iii) one box plant in Bilbao, Spain.

EC Says International Paper Must Divest Certain Box Plants in Europe as Next Step in Acquisition of DS Smith
Article
2 min read

EC Says International Paper Must Divest Certain Box Plants in Europe as Next Step in Acquisition of DS Smith

On 16 April 2024, the boards of International Paper Company ("International Paper") and DS Smith Plc ("DS Smith") announced that they had reached agreement on the terms of a recommended all-share combination of DS Smith with International Paper (the "Combination"), to be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme"). The scheme document in connection with the Scheme was published and sent by DS Smith to DS Smith Shareholders on 11 September 2024 (the "Scheme Document").

Sonoco Initiates Review of Strategic Alternatives for Thermoformed & Flexibles Packaging Business
Article
1 min read

Sonoco Initiates Review of Strategic Alternatives for Thermoformed & Flexibles Packaging Business

Sonoco Products Company announced that it has initiated a review of strategic alternatives for the company's Thermoformed & Flexible Packaging ("TFP") business, a part of the company's Consumer Packaging segment. Exploring alternatives for the TFP business is expected to accelerate Sonoco's portfolio simplification strategy, improve pro forma leverage and further increase shareholder value.