IP Completes Deal for Temple-Inland

The forest products company International Paper Co. (IP), based in Memphis, Tenn., and Temple-Inland Inc. (TIN), based in Austin, Texas, have jointly announced that they have reached an agreement with the U.S. Department of Justice’s Antitrust Division in regard to IP’s acquisition of Temple-Inland. The transaction is valued at $4.5 billion

Following the Department of Justice’s consent, IP completed the deal for Temple-Inland on Feb. 13. TIN is now a wholly owned subsidiary of International Paper.

Under the terms of the consent decree, the combined company will undertake the post-close divesture of 970,000 tons of containerboard mill capacity within four months, with the possibility of two 30-day extensions. The company agreed to divest Temple-Inland's facilities in Ontario, Calif., and New Johnsonville, Tenn., and International Paper's facility in Hueneme, Calif.

In a statement, John Faraci, IP chairman and CEO, says, "We are pleased to have reached an agreement with the [Department of Justice] that addresses their concerns and preserves the value in the combination of these two fine companies. As we take the final steps to closing, we look forward to a smooth integration and to realizing the substantial benefits this transaction provides our customers, employees and shareholders."