IP Gets Shareholders' Approval for DS Smith Acquisition, Stock Up

Group 1: Acquisition Details - International Paper (IP) has announced the acquisition of DS Smith Plc, valued at £5.8 billion ($7.4 billion) on a fully diluted basis, with an enterprise value of £7.8 billion ($9.9 billion) [2] - Approximately 99% of International Paper's shareholders voted in favor of the acquisition, while DS Smith's shareholders had approved the deal earlier [1][2] - The acquisition is expected to close in the latter part of the fourth quarter of 2024, subject to regulatory clearances and customary closing conditions [2] Group 2: Financial Impact - The acquisition is projected to be accretive to International Paper's earnings in the first year post-closure, providing at least $514 million of pre-tax cash synergies annually by the end of the fourth year [1][2] Group 3: Strategic Benefits - The merger will create a global leader in sustainable packaging solutions, enhancing International Paper's corrugated packaging business in Europe and improving customer offerings [3] - The integration of both companies' mill and box networks will optimize supply chains in Europe and the United States, leveraging the expertise of both management teams for enhanced innovation and sustainability [3] Group 4: Industry Context - The merger of International Paper and DS Smith follows another significant industry merger between WestRock Company and Smurfit Kappa Group Plc, forming Smurfit Westrock Plc, a leader in sustainable paper and packaging [4] - International Paper's shares have increased by 37.7% over the past year, outperforming the industry's growth of 30% [5]