Palm, a German paper manufacturer specializing in the production of corrugated base paper (CBP) and corrugated board, has entered into exclusive negotiations with the American company International Paper (IP) for the acquisition of five sites dedicated to the conversion of corrugated board. This transaction, which remains subject to a number of regulatory and social conditions, is part of the process for the takeover of DS Smith by IP, validated by the European Commission in January 2025.
Three French sites concerned, all located in Normandy
Three of the sites concerned by this divestment are located in the north-western part of France, in Normandy: the Saint-Amand and Mortagne-au-Perche production units, and the Cabourg leaf processing site.
Palm is also interested in the Bilbao plant in Spain, and the Ovar plant in Portugal. These sites will enable Palm to strengthen its presence in the Iberian Peninsula, a strategic growth market.
A sale imposed by the European Commission
These sales are taking place against a backdrop of concentration in the sector. On January 31, 2025, the European Commission approved the takeover of DS Smith by International Paper, subject to certain concessions. The European competition authority required the divestment of these five sites in order to avoid a quasi-monopoly situation in certain segments of the corrugated packaging market in the region.
A strategic geographic expansion for Palm
With this operation, the German group, which is forecasting sales of ?2 billion by 2024 and employs 4,200 people, will continue its industrial expansion in corrugated board manufacturing, a sector in which it already operates five paper mills and 29 corrugated box plants in Germany, France and the UK. By setting up operations in Normandy, northern Spain and Portugal, Palm will be moving closer to new markets, while consolidating its production capacity close to major logistics zones.
On an industrial scale, the integration of these sites should optimize supply and distribution flows for packaging solutions. No information has yet been provided on possible synergies or internal restructuring following the acquisition.
The transaction could be finalized by the end of the second quarter of 2025, subject to all necessary approvals. The local teams would be integrated into Palm, which is committed to working with employees at the five sites concerned to ensure continuity of production.
