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International Paper to Sell Kwidzyn Mill in Poland

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International Paper (NYSE: IP) has agreed to sell its Kwidzyn pulp and paper mill to Mayr-Melnhof Karton AG for €670 million (about $812 million). The transaction is expected to close in Q3 2021, pending regulatory approvals. The Kwidzyn mill employs around 2,300 people and produces 740,000 metric tons of various paper products annually. This sale will generate significant cash proceeds and aligns with International Paper's strategy to focus on its corrugated packaging and absorbent fibers businesses following the planned spin-off of its Printing Papers business.

Positive
  • Sale of Kwidzyn mill for €670 million ($812 million) provides significant cash inflow.
  • Supports strategic focus on corrugated packaging and absorbent fibers businesses.
Negative
  • Sale may lead to job losses for approximately 2,300 employees at the Kwidzyn mill.

MEMPHIS, Tenn., Feb. 12, 2021 /PRNewswire/ -- International Paper (NYSE: IP) has entered into an agreement to sell the Kwidzyn pulp and paper mill and supporting operations to Mayr-Melnhof Karton AG for €670 million (approximately $812 million) in cash, subject to closing adjustments for net debt and net working capital. 

The Kwidzyn mill employs approximately 2,300 people and has the annual capacity to produce 740,000 metric tons of folding boxboard, uncoated freesheet, specialty kraft papers, and market pulp on four machines.

On December 3, 2020, International Paper announced its intention to spin off its Printing Papers business into a standalone, publicly-traded company in order to focus on its corrugated packaging and absorbent fibers businesses. The sale of Kwidzyn provides an opportunity for International Paper to realize a premium value and significant incremental cash proceeds, but otherwise does not change its plans for the proposed spin-off.

International Paper will engage in a consultation process with the appropriate employee representatives and expects the transaction to close in the third quarter of 2021, subject to customary closing conditions and regulatory approvals.

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 and Russia. We produce corrugated packaging products that protect and promote goods, and enable world-wide commerce; pulp for diapers, tissue and other personal hygiene products that promote health and wellness; and papers that facilitate education and communication. We are headquartered in Memphis, Tenn., employ approximately 48,000 colleagues and serve more than 25,000 customers in 150 countries. Net sales for 2020 were $21 billion. For more information about International Paper, our products and global citizenship efforts, please visit internationalpaper.com

Certain statements in this press release may be considered forward-looking statements. These statements reflect IP 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 receipt of regulatory approvals for the transaction and the successful fulfillment or waiver of all other closing conditions without unexpected delays or conditions; (ii) the successful closing of the transaction within the estimated timeframe; (iii) industry conditions; (iv) global economic conditions and political changes; and (v) other factors that can be found in IP's press releases and Securities and Exchange Commission filings.  IP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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SOURCE International Paper

FAQ

What is the sale price for International Paper's Kwidzyn mill?

The Kwidzyn mill is being sold for €670 million, approximately $812 million.

What will happen to employees after the sale of the Kwidzyn mill?

International Paper will engage in a consultation process with employee representatives, but the sale may lead to job losses for around 2,300 employees.

When is the expected closing date for the Kwidzyn mill transaction?

The transaction is expected to close in the third quarter of 2021, pending regulatory approvals.

How does the sale of the Kwidzyn mill impact International Paper's strategy?

The sale provides significant cash proceeds and aligns with International Paper's focus on its corrugated packaging and absorbent fibers businesses.

What was the annual production capacity of the Kwidzyn mill?

The Kwidzyn mill has an annual production capacity of 740,000 metric tons of various paper products.

International Paper Co.

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