MEMPHIS, Tenn., Dec. 21 /PRNewswire-FirstCall/ -- International Paper has agreed to sell five wood products mills to Georgia-Pacific for approximately $237 million, subject to various adjustments at closing.
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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.
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 U.S., Europe, South America and Asia, as well as xpedx, North America's largest 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 http://www.internationalpaper.com/.
This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to: (i) the ability of the parties to successfully consummate the transactions contemplated by the sale agreement without a purchase price adjustment; (ii) the successful fulfillment (or waiver) of all conditions set forth in the sale agreements; (iii) the successful closing of the transaction within the estimated timeframes; (iv) the ability of the Company to successfully negotiate satisfactory sale terms for assets that are contemplated for sale but are not currently under contract; and (v) industry conditions, including changes in the cost or availability of raw materials and energy, changes in transportation costs, competition, changes in the Company's product mix and demand and pricing for the Company's products. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
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