International Paper Agrees to Sell 5 Wood Products Plants to Georgia-Pacific for Approximately $237 Million
The agreement is part of International Paper's previously announced transformation plan to focus on uncoated papers and packaging, as well as xpedx, its North American distribution business.
30/12/06 International Paper has agreed to sell five wood products mills to Georgia-Pacific for approximately $237 million, subject to various adjustments at closing.
The facilities included in the sale are three plywood and lumber complexes in Camden, Texas, Springhill, La., and Gurdon, Ark.; a plywood mill in Corrigan, Texas; and an engineered wood products mill in Thorsby, Ala. The mills employ approximately 2,400 people. The sales are expected to close in the first half of 2007.
"This agreement substantially completes the sale of our wood products business, part of our transformation plan to become a more focused, more profitable company," said John Faraci, IP chairman and chief executive. "We now have sale agreements in place for each of the businesses we planned to divest as part of the transformation plan, and expect to complete the transactions early in 2007."
The agreement is part of International Paper's previously announced transformation plan to focus on uncoated papers and packaging, as well as xpedx, its North American distribution business. Proceeds from divestitures announced to date, including the agreement announced today, total approximately $11 billion.
