Memphis, Tennessee, USA, 02 March 2009 -- /PRNewswire/ -- International Paper (NYSE: IP) announced today that it plans to divest approximately 143,000 acres of properties located in the southeastern United States in a transaction with American Timberlands Fund I, LP. The transaction value is approximately USD 275 million.
International Paper will sell approximately 114,000 acres to the partnership for USD 220 million in cash and will contribute 29,000 acres, with a value of USD 55 million, in exchange for a 20% interest in the partnership. The transaction value is subject to various adjustments at closing and is contingent upon the partnership raising USD 220 million to finance the transaction. The transaction is expected to close in mid-June 2009.
"This was an attractive opportunity, and we intend to use the proceeds received at closing to pay down debt," said John Faraci, International Paper's chairman and chief executive officer. "This is consistent with our commitment to strengthening our balance sheet and maintaining our financial flexibility."
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 more than 61,500 people in more than 20 countries and serves customers worldwide. The company's net sales in 2008 were approximately USD 25 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.
American Timberlands Co. (Columbia, South Carolina) is a vertically integrated land investment management firm organized for the purpose of identifying, creating, and managing land investments composed of timberland with diverse value components. American Timberlands Fund I, LP, a Delaware limited partnership, is a real estate operating company established to provide a value-added land investment. The partnership's assets will be managed with the assistance of American Timberlands Co. LLC, an affiliate of the General Partner. For more information about American Timberlands Company, visit www.americantimberlands.com.