International Paper to Sell Corrugated Packaging Business in Brazil

SEATTLE (Scrap Monster):  Memphis, Tennessee-headquartered International Paper (IP) announced that it has entered into an agreement to sell its Brazilian corrugated packaging business.

The agreement is part of the company’s previously announced strategic review of Brazilian operations. It must be noted that the company had engaged a third party to assist with calculating the fair value of the Brazilian packaging business and the fixed assets. This followed the determination that the current carrying value of the assets exceeded fair value due to change in business outlook.

IP Brazilian corrugated packaging business, comprising of three containerboard mills and four corrugated box plants, will be sold to Sao Paulo-based Klabin S.A. for a total of R$330 million, out of which R$280 million will be paid upon closing of the transaction and the balance R$50 million after a period of one year, after certain adjustments. The transaction is expected to close during the second half of 2020, subject to closing conditions and necessary regulatory approvals.

Meantime, the company made it clear that the Papers and Forestry businesses in the country will be unaffected.

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