IP Agrees to Sell Three Mills

International Paper, headquartered in Memphis, has reached agreements to sell three containerboard mills in the United States in order to satisfy the company's obligations in its February 2012 settlement agreement with the U.S. Department of Justice (DoJ). Under the terms of the DOJ settlement agreement, IP has agreed to divest the following mills:

• The former Temple-Inland mill in Ontario, Calif.
• The former Temple-Inland mill in New Johnsonville, Tenn.
• The International Paper mill in Oxnard (Hueneme), Calif.

IP has entered into agreements for the sale of the New Johnsonville, Tenn., mill to Hood Companies Inc., and the sale of its Ontario and Hueneme mills to New-Indy Containerboard LLC, a newly formed joint venture of The Kraft Group LLC and Schwarz Partners, LP.

"We are pleased to have reached these agreements within the timeline established in our settlement with the DOJ," says John Faraci, IP’s chairman and CEO. "The purchasers are experienced operators in the paper, forest products and packaging industries, and we look forward to working with them to close these transactions in a timely manner."

In a joint statement, The Kraft Group and Schwarz Partners said, "We have been working together in the paper and packaging industry for decades, and we have never been more optimistic about the direction of the industry than we are currently. This investment represents a generational commitment by both families to the industry."

In a statement, Hood Companies said, "The mill represents a key strategic growth platform within Hood's holdings. We view the New Johnsonville mill as an exceptional asset with an outstanding management team and employee group. We look forward to the long term opportunities that this acquisition creates for the New Johnsonville employees and Hood Companies."