IP Sells Brazilian Coated Papers to Stora
MEMPHIS, TN—International Paper has signed a definitive agreement to sell its Brazilian coated papers business to Stora Enso Oyj for approximately $415 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.
The transaction is expected to close in the third quarter of 2006 subject to customary closing conditions.
The move is part of International Paper’s previously announced transformation plan to focus on uncoated papers and industrial and consumer packaging globally. Including this deal, expected proceeds from transformation-related divestitures announced to date are approximately $9.7 billion.