Memphis, Tennessee, USA, 01 June 2012 -- /PRNewswire/ -- International Paper (NYSE: IP) today announced that it has reached two agreements to sell three U.S containerboard mills to satisfy the company's obligations in its February 2012 settlement agreement with the U.S. Department of Justice (DOJ). Under the terms of the DOJ settlement agreement, entered into in connection with the company's acquisition of Temple-Inland, International Paper agreed to divest the following mills:
- the former Temple-Inland mill in Ontario, California
- the former Temple-Inland mill in New Johnsonville, Tennessee
- the International Paper mill in Oxnard (Hueneme), California
After conducting a robust auction process, International Paper has entered into agreements for the sale of the New Johnsonville mill to Hood Companies, Inc., and for the sale of the Ontario and Hueneme mills to New-Indy Containerboard LLC, a newly formed joint venture of The Kraft Group, LLC and Schwarz Partners, LP.
"We are pleased to have reached these agreements within the timeline established in our settlement with the DOJ," said John Faraci, Chairman and CEO. "The purchasers are experienced operators in the paper, forest products, and packaging industries, and we look forward to working with them to close these transactions in a timely manner."
The Kraft Group and Schwarz Partners said in a joint statement today, "We have been working together in the paper and packaging industry for decades and we have never been more optimistic about the direction of the industry than we are currently. This investment represents a generational commitment by both families to the industry."
Hood Companies Inc. said in a statement, "The mill represents a key strategic growth platform within Hood's holdings. We view the New Johnsonville mill as an exceptional asset with an outstanding management team and employee group. We look forward to the long term opportunities that this acquisition creates for the New Johnsonville employees and Hood Companies."
Each divestiture is subject to certain closing conditions, including DOJ approval, and must be closed within the periods prescribed by the DOJ settlement agreement.
About International Paper
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee, the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2011 were USD 26 billion. Temple-Inland Inc., which was acquired in February 2012, had 2011 net sales of USD 4 billion. For more information about International Paper, its products, and stewardship efforts, visit internationalpaper.com.
About The Kraft Group
The Kraft Group, headquartered in Foxborough, Massachusetts, is the holding company for the Kraft family's various businesses, with concentrated interests in five areas: paper and packaging manufacturing and the distribution of forest products; sports and entertainment; real estate development; private equity investing; and philanthropy. Together, the Rand-Whitney Group and International Forest Products conduct business in more than 90 countries and form one of the largest privately-owned paper packaging and distribution companies in the world, trading more than 2 million tons of pulp and paper grades annually. For more information, visit www.thekraftgroup.com.
About Schwarz Partners, LP
Schwarz Partners based in Indianapolis, Indiana is a holding company with interests in various businesses, with a major focus on packaging, sheet feeders, and transportation. The Royal Group consists of two full corrugator box plants and 12 sheet plants. These plants are located in nine states and service customer needs from simple brown boxes to multicolor, high-graphic boxes in small lots and truck load quantities. Schwarz Partners also has interests in eight sheet feeder corrugator plants. These corrugators manufacture N flute, F flute, and E flutes, as well as standard B and C flutes. The sheet feeders and the corrugator box plants currently consume approximately 800,000 tons of containerboard annually. TransCorr, LLC, the transportation company, is headquartered in Indianapolis, Indiana, and operates approximately 500 trucks out of terminals in Indianapolis; St. Louis, Missouri; and Atlanta, Georgia. TransCorr also has a logistics office in Grand Rapids, Michigan, which moves more than 1000 loads per week.
About Hood Companies, Inc.
Located in Hattiesburg, Mississippi, Hood Companies, Inc. is a privately owned, closely held holding company and is the parent company to operating subsidiaries involved in the manufacture and distribution of forest and wood products, building and construction materials and packaging products throughout North America. For more information about Hood Companies' subsidiary operations, locations, and products, visit www.hoodcompanies.com.