International Paper Sells Brazilian Coated Papers Business to Stora Enso
Memphis, Tennessee, USA, 01 September 2006 -- /PRNewswire/ -- International Paper (NYSE:IP) has completed the sale of its Brazilian coated papers business to Stora Enso Oyj for approximately USD 420 million, subject to certain post-closing adjustments. The business includes a coated paper mill and lumber mill in Arapoti, Parana State, Brazil, as well as 50,000 hectares (approximately 124,000 acres) of forestland in Parana. (These assets were formerly owned by Inpacel -- Industria de Papel Arapoti Ltda. and Inpacel Agroflorestal Ltda., subsidiaries of International Paper.)
The transaction is part of International Paper's previously announced transformation plan to focus on uncoated papers and industrial and consumer packaging globally. Including this transaction, expected proceeds from transformation-related divestitures announced to date are approximately USD 9.7 billion.
"The business and, more importantly, its employees have been an important part of International Paper in Brazil, and I am confident they will be an excellent addition to Stora Enso," said John Faraci, IP chairman and chief executive. "International Paper's ongoing operations in Brazil remain an important base for the company, and the region remains an area of growth for us as we explore opportunities to strengthen our uncoated papers and packaging businesses there."
The Brazilian coated papers business had sales of approximately USD 230 million in 2005. It produces approximately 200,000 metric tons of coated paper for catalog, magazine, and retail insert markets, and approximately 83 million board feet of lumber each year. Included among the 50,000 hectares of forestlands are 25,000 hectares of pine plantation and 5,000 hectares of eucalyptus plantation. The business employs 711 people.
About International Paper
Headquartered in the United States, International Paper has been a leader in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the United States, Europe, South America, and Asia. These businesses are complemented by an extensive North American merchant distribution system. International Paper is committed to environmental, economic and social sustainability, and has a long-standing policy of using no wood from endangered forests. To learn more, visit www.internationalpaper.com.