International Paper factory in Ovar to pass to German hands

International Paper’s packaging factory Cartovar in Ovar looks set to be acquired by the German group Palm together with four other assets that the US company agreed to sell in order to get the green light from Brussels to buy the British company DS Smith.

International Paper began “exclusive negotiations” with the German group for the sale of five factories – three in France, one in Portugal, and another in Spain, according to International Paper in a communiqué released on Monday. The transaction should be completed in the second quarter of this year.

“Finding a buyer for these five factories was our team’s main priority since the acquisition of DS Smith (a packaging company), and I am very satisfied that we have found this buyer”, said the Chairman and CEO of International Paper, Andy Silvernail in the communiqué.

The DS Smith purchase was approved by Brussels in January this year but only under the condition that the five assets identified were sold within six months. The sale was valued at ₤5.8Bn or €6.7Bn.

The Portuguese factory Cartovar was acquired in 2019 by International Paper from Europac which at the time employed 100 people.