International Paper Concluded Sale of Brazilian Corrugated Packaging Units

SEATTLE (Scrap Monster): International Paper (IP) announced that it has completed sale of its Brazilian packaging paper and corrugated packaging business to Klabin S.A. The sale of the assets to Brazil’s largest manufacturer and exporter of packaging paper was announced in the month of March this year.

The transaction covered IP’s three containerboard mills and four box plants located in São Paulo, Goiás and Amazonas. Meantime, the papers business and forestry operations run by the company in Brazil were not part of the transaction. The corrugated box operations are estimated to have a production capacity of around 305,000 tons per year, enjoying a market share of approximately 7% in the domestic Brazilian market.

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The acquisition has boosted Klabin’s installed capacity to over 1 million tons of corrugated packaging per year. It will further strengthen its position as a leader in the corrugated boxes segment in Brazil. As of now, Klabin has corrugated boxes plants across the five regions of Brazil.

The sale of the assets to Klabin S.A. was for a sum of R$330 million, out of which R$280 million has been paid at the closing of the transaction. The balance amount of R$50 million will be paid after a year, as per the terms of the deal.