IP completes deals in Asia, Europe

International Paper (IP) a Memphis, Tennessee-based forest products company, has announced that it has completed the acquisition of Holmen Paper’s newsprint mill in Spain and the sale of its corrugated packaging business in China and Southeast Asia to Xiamen Bridge Hexing Equity Investment Partnership Enterprise.

When IP first announced plans to acquire the newsprint mill in Spain in March the company said it planned to invest about €150 million to convert the newsprint machine to produce recycled containerboard. The conversion is expected to be completed by the second half of 2017. The company says it expects the recycled board mill to produce 380,000 metric tons of finished product per year.

Along with the purchase of the mill in Spain, the acquisition included taking a 50% ownership interest in Holmen’s Peninsular Cogeneracion S.A. plant, a cogeneration facility, and Cartón y Papel Reciclado S.A. (Carpa), a recycling company with three locations in Spain.

When IP first announced the deal, Jean-Michel Ribieras, president of International Paper Europe, Middle East & Africa (EMEA), said, “We are constantly looking at ways to provide superior value for our customers. The Madrid facility represents a strategic opportunity to grow our corrugated packaging business in EMEA by further enhancing our value proposition and offering our customers even more choices in terms of innovative, tailored and high performing packaging solutions.

“This acquisition is a significant investment into the future of our corrugated packaging business in EMEA, our customers, our employees and our communities, and we are excited to be making this strategic step,” Ribieras continued.

In addition to announcing the completion of the mill in Spain, IP has completed the sale of its corrugated packaging business in China and Southeast Asia, which includes 18 plants and about 3,000 employees.

Under terms of the transaction, IP received about $150 million subject to postclosing adjustments and other payments, including the buyer's assumption of the liability for loans of about $50 million to be paid to International Paper within six months of closing of the sale.