DS Smith to close 29 packaging sites and a mill, targets EUR 480m savings before London listing
At its 3 November capital markets day, DS Smith listed 29 packaging sites, one mill, two recycling depots and four offices announced for closure. It also set out about EUR 480m of annualised savings, mostly at run-rate by end-2027, ahead of its separation from International Paper as DS Smith plc. The group guided 2026 adjusted EBITDA of EUR 730m to EUR 780m on revenue of about EUR 8bn and targets a mid-teens margin in the medium term. London admission, with ADRs in New York, is targeted for early to mid December 2026; International Paper will keep 19.9% and said on 15 October it is also weighing a sale.
Why this mattersThe closures and savings set the cost base of Europe's soon-to-be-independent box maker, whose final owner is still open while International Paper weighs a sale alongside the listing.
- 29 packaging sites, 1 mill, 2 recycling depots and 4 offices are announced for closure; about 60% of the volumes to be moved between plants have already been transferred.
- Annualised savings of about EUR 480m, around 14% of operating costs, are mostly at run-rate by end-2027.
- 2026 adjusted EBITDA is guided at EUR 730m to EUR 780m, a 9.0% to 9.7% margin on revenue of about EUR 8bn; the medium-term target is a mid-teens margin.
- International Paper will keep 19.9% of DS Smith plc and said on 15 October 2026 it is weighing a sale in parallel with the listing.
- Admission in London and ADRs in New York are targeted for early to mid December 2026, after a Form 20-F filed on 28 October.
- Guidance includes capex of EUR 550m to EUR 570m and one-off cash costs of EUR 120m to EUR 130m; the medium-term leverage target is 1.5 to 2.5 times.