A $7.2B Bet on Fiber: Packaging’s New Giant

International Paper and DS Smith merge to form the world’s largest fiber packaging company, signaling a powerful shift toward global sustainable packaging

1 Feb 2025

The global packaging industry entered a new era in January 2025. International Paper completed its $7.2 billion acquisition of UK-based DS Smith, creating the largest fiber-based packaging company in the world.

The deal signals more than a simple expansion. It reflects a decisive shift toward recyclable, fiber-driven packaging as companies search for alternatives to plastic and other hard-to-recycle materials.

CEO Andrew Silvernail, who stepped into the role in May 2024, pushed the merger across the finish line with unusual speed. Under his leadership, two companies long known for sustainability efforts are now operating under one global strategy.

The combined network is vast. Together, the companies run more than 430 facilities, including over 200 mills and packaging plants across North America and more than 230 across Europe.

That scale brings serious production muscle. The new company can produce more than 11 million metric tons of recyclable packaging materials each year, supplying everyone from large retailers to fast-moving e-commerce platforms.

Timing also played a role in the deal’s momentum. Governments are tightening packaging rules while consumers increasingly expect environmentally responsible products, pushing businesses to rethink how goods are wrapped, shipped, and displayed.

DS Smith arrives with a reputation for innovative circular packaging design. International Paper adds decades of fiber recovery expertise and a sprawling supply chain capable of delivering materials across continents.

Silvernail described the merger as a transformational step that positions the company to lead both in sustainability and service. The challenge now lies in blending operations, technology, and corporate cultures spread across two continents.

Industry analysts say integration will not be simple. Regulatory requirements, regional policies, and operational differences could test leadership in the early years of the partnership.

Even so, the move may reshape competition. A company of this size raises the bar for global reach and sustainable production, potentially pushing smaller rivals to consolidate or specialize.

If the strategy succeeds, the ripple effects could reach far beyond packaging. The merger may accelerate a broader shift toward circular materials and help redefine how products move through the global economy.