MEDIA RELEASE PR39286
International Paper Agrees to Purchase SCA's Asia Packaging Business
MEMPHIS, Tenn., April 26 /PRNewswire-AsiaNet/ --
Strengthens International Paper's current packaging business in
Asia
International Paper (NYSE: IP), a global leader in the paper and
packaging industry, today announced it signed a definitive agreement to
purchase SCA's packaging business in Asia for $200 million in cash, subject
to post-closing adjustments. International Paper expects to complete the
purchase in the second quarter of 2010, subject to regulatory approval of the
transaction in China.
"We're buying good facilities at a good price as well as gaining an
excellent team of 4,500 employees," said Paul Brown, president, IP Asia.
"SCA's facilities complement our existing converting system of 12 corrugated
box plants, which are principally in China. The combination strengthens our
packaging business in Asia and will make it more competitive, more profitable
and better able to serve customers."
The SCA packaging business in Asia, which is primarily in China, consists
of 13 corrugated box plants and two specialty packaging facilities.
About International Paper
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,
industrial and consumer packaging and distribution. Headquartered in Memphis,
Tenn., the company employs about 56,000 people in more than 20 countries and
serves customers worldwide. 2009 net sales were more than $23 billion. For
more information about International Paper, its products and stewardship
efforts, visit internationalpaper.com.
This news release contains 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 transaction contemplated by the sale agreement without a purchase price
adjustment; (ii) the receipt of regulatory approval for the transaction;
(iii) the successful closing of the transaction within the estimated
timeframe; and (iv) the failure to realize synergies and cost-savings from
the transaction or delay in realization thereof. 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.
SOURCE International Paper
CONTACT: Media: Patty Neuhoff, +1-901-419-4052, or Rick Ouellette,
+1-901-573-4002; or Investor Relations: Thomas A. Cleves, +1-901-419-7566, or
Emily Nix +1-901-419-4987
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