International Paper Acquires Remaining Shares of Orsa IP Embalagens in Brazil
MEMPHIS, Tenn., April 8, 2014 /PRNewswire/ -- International Paper (NYSE: IP) has acquired the remaining 25% of shares of Orsa International Paper Embalagens S.A. from its joint venture partner, Brazilian pulp and packaging producer Jari Celulose, Embalagens e Papel S.A. The shares were purchased at the original transaction price per share for R$318MM (~$135MM USD). With this transaction, International Paper takes full ownership of three containerboard mills and four box plants, which made up Jari's former corrugated packaging assets. "This investment is in-line with our strategy to selectively grow our industrial packaging business globally in attractive markets and put capital to work that deliver returns above our cost of capital," said John Faraci, Chairman and Chief Executive Officer.
International Paper has been in the printing papers business in Brazil for over 50 years with a production system today comprised of two pulp and paper mills in Mogi Guacu and Luiz Antonio, in Sao Paulo State, and a paper mill in Tres Lagoas, Mato Grosso do Sul State. The brands that are produced at these mills include Chamex, Chamequinho and Chambril.
About International Paper
International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2013 were $29 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.
Certain statements in this press release may be considered forward-looking statements. These statements reflect 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) our ability to achieve the benefits we expect from this transaction or delay in realization thereof; (ii) industry conditions, including but not limited to changes in the cost or availability of raw materials and energy, transportation costs, our product mix, demand and pricing for our products; (iii) global and Brazilian economic conditions and political changes, including but not limited to changes in currency exchange rates; (iv) unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations and to actual or potential litigation; and (v) whether we experience a material disruption at one of our manufacturing facilities. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements are discussed in greater detail in our Securities and Exchange Commission filings. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE International Paper