International Paper Announces Strategic Spin-off of Printing Paper Business
Paper Recycling | 2020-12-04 12:45:21
SpinCo will serve key geographies, including North America, Brazil and Europe.
By Paul Ploumis
SEATTLE (Scrap Monster): Memphis, Tenn.-based International Paper (IP) announced pursue a spin-off of the Company's Printing Papers segment into a standalone, publicly traded company. The new company will be called SpinCo. Upon completion of the spin-off, both the companies will be positioned for long term success. The transaction is expected to be completed in the third quarter of 2021.
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Further to the completion of the transaction, Jean-Michel Ribiéras, currently senior vice president, Industrial Packaging, will serve as the CEO of the new company. Also, John V. Sims, currently senior vice president, Corporate Development, will be its CEO. The other members of the leadership team and SpinCo’s board of directors will be announced in due course, the company press release said.
SpinCo will serve key geographies, including North America, Brazil and Europe.
The streamlining is part of IP’s efforts to reduce its cost structure and accelerate earnings. It aims to generate an additional $350 - $400 million of annual earnings by the end of 2023, through accelerated profitable growth in Industrial Packaging in North America, Europe, the Middle East and Africa.
