MEMPHIS, Tenn., Dec. 1,
2016 /PRNewswire/ -- International Paper (NYSE: IP) today
announced that it has completed its acquisition of Weyerhaeuser's
pulp business for approximately $2.2
billion in cash, subject to post-closing adjustments.
Because the transaction is a purchase of assets, International
Paper expects to realize a tax benefit with an estimated net
present value of approximately $300
million. International Paper expects annual
synergies of approximately $175
million by the end of 2018, which will require the need for
one-time costs of approximately $85
million.
"This transaction positions International Paper as the premier
global supplier of fluff pulp and enhances our ability to generate
additional cash flow," said International Paper Chairman and CEO
Mark Sutton. "I want to
personally welcome the talented employees of Weyerhaeuser to the
International Paper family as we look forward to serving our
customers around the world."
In this transaction, International Paper acquired five pulp
mills and two converting facilities that produce fluff pulp,
softwood pulp, and specialty pulp products for a number of consumer
applications including diapers, other hygiene products, tissue, and
textiles. The acquired business has approximately 1,900
employees around the world, with manufacturing operations based in
Canada, Poland and the U.S. (located in Mississippi, Georgia and North
Carolina).
The combined businesses will be called Global Cellulose Fibers,
led by senior vice president Jean-Michel
Ribieras, and reported as a separate business segment
beginning with the Company's release of earnings for the fourth
quarter of 2016.
Certain statements in this press release may be considered
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 include but are not limited to: (i) the failure
to realize the expected synergies, cost-savings and other benefits
from the acquisition of Weyerhaeuser's pulp business or delay in
realization thereof in light of integration difficulties or other
challenges; (ii) the level of our indebtedness and changes in
interest rates; (iii) industry conditions, including but not
limited to changes in the cost or availability of raw materials,
energy and transportation costs, competition we face, cyclicality
and changes in consumer preferences, demand and pricing for our
products; (iv) global economic conditions and political changes,
including but not limited to the impairment of financial
institutions, changes in currency exchange rates, credit ratings
issued by recognized credit rating organizations, the amount of our
future pension funding obligation, changes in tax laws and pension
and health care costs; (v) unanticipated expenditures related to
the cost of compliance with existing and new environmental and
other governmental regulations and to actual or potential
litigation; and (vi) whether we experience a material disruption at
one of our manufacturing facilities. These and 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. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About International Paper
International Paper (NYSE:
IP) is a leading global producer of renewable fiber-based
packaging, pulp and paper products with manufacturing operations in
North America, Latin America, Europe, North
Africa, Asia and
Russia. We produce packaging products that enable world-wide
commerce; pulp for diapers, tissue and other personal hygiene
products; papers that drive communication; paper bags that carry
groceries; and paper cups and food containers. We are headquartered
in Memphis, Tenn., and employ
roughly 55,000 colleagues located in more than 24 countries.
Net sales for 2015 were $22 billion.
For more information about International Paper, our products
and global citizenship efforts, please visit
internationalpaper.com.
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SOURCE International Paper