Hyderabad, India, 14 October 2011 -- /PRNewswire/ -- International Paper (NYSE: IP) today announced that it has completed the acquisition of a 75% stake in Andhra Pradesh Paper Mills (APPM).
International Paper purchased 53.5% of the APPM shares from L.N. Bangur and related family members and affiliates for approximately USD 226 million in cash. These sellers have also entered into a covenant not to compete, for which they received a cash payment of USD 57 million. International Paper also acquired an additional 21.5% of APPM shares in a public tender offer completed on 08 October 2011, for approximately USD 105 million in cash.
Paul Brown, president, IP India, will become executive chairman of the APPM board of directors, effective today.
"As we complete this phase of the process and move into majority ownership, International Paper is well-positioned to help serve a rapidly growing Indian market," said John Faraci, International Paper chairman and chief executive officer. "We look forward to building on Andhra Paper's tradition of excellence while introducing the global best practices that make International Paper an industry leader. We are delighted to welcome these new employees to International Paper."
APPM is one of the leading integrated paper manufacturers in India, and operates two mills with a combined annual capacity of 250,000 metric tons of uncoated freesheet paper. The existing management team and 2500 employees of APPM will continue to operate the business, supplemented by additional International Paper leadership and professional and technical resources.
(Note: U.S. doallr monetary amounts are based on an average Indian Rupee to U.S. dollar exchange rate of INR 48.25 per U.S. dollar.)
APPM is a leading manufacturer of pulp and paper products and caters to both the domestic and foreign markets. With two manufacturing units in Andhra Pradesh and a total paper production capacity of 250,000 metric tons per annum, APPM produces writing, printing, and copier papers. With sales of approximately USD 160 million, focused social and community programs backed up with its own pioneering work in raw material generation through social farm forestry and a very strong strategic growth focus, APPM is becoming a driving force in the green paper manufacturing arena in the world economy. For more information on APPM, visit andhrapaper.com
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 about 59,500 people in more than 24 countries and serves customers worldwide. 2010 net sales were more than USD 25 billion. For more information about International Paper, its products, and stewardship efforts, visit internationalpaper.com.