Sylvamo to Sell Europe Business to Midas Atlantic Partners

The Tip Desk · November 6, 2026 · 2 min read

The paper company said the carve-out would leave it more focused and better able to invest in remaining mills.

Sylvamo (SLVM) is entering into a put option agreement for a binding offer from Midas Atlantic Partners to acquire its Europe business, a proposed sale the Memphis-based paper company said would leave it a more focused company with greater ability to invest in its remaining operations. The company will consult works councils and employee representatives before making a final decision; the parties expect to enter into a definitive share purchase agreement once those consultations are complete.

Closing is expected by the end of the first quarter of 2027. The company did not disclose a purchase price, cash-per-share figure, or exchange ratio in the announcement.

Chief Executive Officer John Sims framed the sale as a strategic step for both the Europe unit and the rest of the company. “We believe this potential transaction represents an important strategic step for our Europe business and Sylvamo,” Sims said. “In Europe, it would create the opportunity to move forward with an owner experienced in corporate carve-outs and positioning businesses for long-term success.”

Sims said that after the proposed transaction, Sylvamo would be a more focused company, with greater ability to invest in the business, strengthen performance and pursue world-class excellence. “We believe that focus will make us a stronger company and better position us to create sustainable value for our employees, customers and investors,” he said.

The Europe segment has been a drag on Sylvamo’s results even as North America has carried the profit. In the second quarter of 2026, Europe sales were $197 million and the segment posted a $20 million operating loss, compared with a $44 million loss in the first quarter. North America sales were $411 million and operating profit was $50 million. Latin America sales were $219 million with a $16 million operating loss.

Sims has already described 2026 as a transition year as the company adjusts its North America footprint after the termination of the Riverdale supply agreement with International Paper, works through changing tariffs, and completes strategic investments at the Eastover, South Carolina, mill. The company said it has been planning for the Riverdale conversion since its 2021 spinoff and that the supply agreement was not part of its long-term strategy.

High-return investments at Eastover continue: the paper machine optimization project is expected to add 60,000 short tons of uncoated freesheet capacity annually, the softwood woodyard operation is on schedule for the first quarter of 2027, and the company said a new cutsize sheeter had arrived in the U.S. and teams were preparing to install it.

Sylvamo, which describes itself as the world’s paper company with mills in Europe, Latin America and North America, reported 2024 net sales of $3.8 billion and more than 6,500 employees.