IP agreed to the divestment of the five plants as a condition of the European Commission’s clearance of IP’s acquisition of DS Smith in January. The plants in question are corrugated box plant Saint-Amand, corrugated box plant Mortagne, and sheet plant Cabourg, all in the Normandy area in the north-west of France.

Also; corrugated box plant Bilbao, in the north-west of Spain, and corrugated box plant Ovar, in the north of Portugal.

The acquisition of the five plants from IP is subject to the approval of the European Commission and the French antitrust authorities. Furthermore, the required French works council consultations and employee information processes need to be completed by IP. Closing is expected by the end of the second quarter of 2025.

“Finding the right buyer for these five facilities has been a top priority for our team since the completion of the acquisition of DS Smith, and I’m pleased that we have found one in Palm,” said International Paper chairman and CEO Andy Silvernail.

“We are grateful for the many contributions the team members at these five plants have made to the company and know they will continue to be successful and deliver value with their new owners.”

As a result of this disposal, IP will have satisfied all of its obligations towards the European Commission in connection with the acquisition of DS Smith.

Palm said that with the potential acquisition of the plants, it could further expand its geographical presence in Western Europe.

“In the future, we will be able to serve our customers with high quality corrugated packaging also in Normandy, Spain and Portugal. We strive to be a trusted partner for our customers, offering highest product quality, reliable service and sustainable production processes,” Palm stated.

Late last year, Palm acquired John Hargreaves (Collyhurst & Stalybridge), a producer of corrugated products based close to Manchester.

In 2024, Palm’s 4,200 staff achieved a turnover of €2bn (£1.71bn).