U.S. Paper Company Goes All-In on Packaging, Loses Over $10 Billion in a Day

International Paper (NYSE: IP) plunged more than 5% on the New York Stock Exchange on the 19th, closing at $34. Its market capitalization fell to about $18 billion, erasing roughly $900 million in a single session. Trading volume topped 5.48 million shares, well above its average.

In January, the company completed the $1.5 billion sale of its global cellulose fibers business to private equity firm American Industrial Partners, marking the conclusion of its shift toward a packaging-centric model. It has also announced plans to acquire UK packaging firm DS Smith for approximately $7.2 billion in 2025 and to reorganize by separating its North American and European operations.

Headquartered in Memphis, Tennessee, International Paper is one of the world’s largest paper and packaging companies, specializing in corrugated boxes and industrial packaging. Throughout the 2020s, it spun off its printing papers division as Sylvamo and divested non-core assets to transform into a pure packaging company. Further restructuring initiatives and capital-allocation strategies are likely to be key drivers of its future share-price performance.