International Paper Company IP announced that it acquired a portfolio company of One Rock Capital Partners, North Pacific Paper Company (“NORPAC”). The deal is in sync with International Paper's strategic transformation to maximize value creation for customers, shareholders and employees.
The deal was set at $360 million. Based in the United States, NORPAC is a paper manufacturer with 500 employees at its paper mill. With three industry-leading machines at its paper mill, NORPAC generates about one million tons of containerboard and other grades annually.
NORPAC's facility complements IP's existing mill system, helping the company increase system flexibility and reduce costs. IP will gain from NORPAC's attractive customer base, location and operational capabilities. The addition of NORPAC will aid International Paper’s ability to meet the rising demand for lightweight, high-performance packaging and expand services in the growing West Coast region.
IP’s Focus on Portfolio Expansion
Last month, International Paper announced the acquisition of Delmarva Corrugated Packaging in Dover, DE. The transaction is set to expand International Paper’s footprint across the expanding East Coast market.
IP will gain from the Dover facility's strong customer base and strategic location, which will aid the company’s capabilities and boost its capacity to produce the highest-quality sustainable packaging solutions.
International Paper’s Q1 Performance
IP posted adjusted operating earnings of 15 cents per share for the first quarter of 2026, missing the Zacks Consensus Estimate of earnings of 18 cents by 16.7%. The figure declined 11.8% from earnings of 17 cents a year ago.
Net sales were $5.97 billion, rising 13.4% year over year but missing the consensus mark of $6.05 billion by 1.2%.
IP Stock's Price Performance
International Paper's shares have lost 25% in the past year compared with the industry's 11.7% decline. During this time, the Basic Materials sector has jumped 43.1%, whereas the S&P 500 has grown 30.9%.
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International Paper’s Zacks Rank & Stocks to Consider
IP currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the basic materials space are Albemarle Corporation ALB, Air Products and Chemicals, Inc. APD and Avino Silver & Gold Mines Ltd. ASM. ALB sports a Zacks Rank #1 (Strong Buy) at present, whereas APD and ASM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 181% so far this year.
The Zacks Consensus Estimate for Air Products and Chemicals’ current-year earnings is pegged at $13.20 per share, indicating a 9.7% year-over-year rise. APD has an average trailing four-quarter earnings surprise of 2.9%. Air Products and Chemicals’ shares have gained 3.7% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 90.5% in a year.
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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).