13 December 2012 16:03 [Source: ICIS news]
HOUSTON (ICIS)--US paper and packaging maker International Paper (IP) said on Thursday it has reached an agreement to sell its Temple-Inland Building Products division to Georgia-Pacific for $750m (€570m) in cash.
The assets to be sold include 16 manufacturing facilities - five solid wood mills, four particleboard plants, two medium-density fibreboard plants, one fibre board plant and four gypsum wallboard plants, Tennessee-based IP said.
Its facilities are located across eight states, primarily in the southeastern and eastern portions of the United States, with access to five of the top 12 housing markets.
The transaction is expected to be completed in the first quarter of 2013.
IP intends to use the proceeds from the sale to reduce its debt, the company said.
IP is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.
Based in Atlanta, Georgia, Georgia-Pacific is a unit of Koch Industries.
Temple-Inland, which was acquired by IP in February 2012, had 2011 net sales of $4bn.
($1 = €0.76)
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