IP Announces Agreement to Acquire Temple-Inland

According to IP, the merger has been approved by the boards of directors of both companies and will offer numerous benefits for the shareholders and customers of both companies and that it is consistent with IP's focus on achieving and sustaining cost of capital returns throughout the cycle. The transaction is expected to close in the first quarter of 2012.

"The strategic benefits of this combination are clear, and we are pleased to be able to move forward on terms that are financially attractive for both sets of shareholders,” says John Faraci, IP chairman and CEO. “Acquiring Temple-Inland enhances our ability to generate additional cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we integrate our businesses and create an even stronger company with substantial benefits for our customers, employees and shareholders."

Doyle Simons, TIN chairman and CEO, adds, "This transaction creates value for both Temple-Inland and International Paper shareholders. The combined company will be positioned to be a leader in providing high quality products for its customers."

According to a Bloomberg report, combining the two companies would increase IP’s share of the North American corrugated packaging market to 37 percent from its current 27 percent.