International Paper (IP) sells paper and pulp mill for $812M

In an agreement with Mayr-MelnhofKarton AG, International Paper has agreed to sell its Kwidzyn paper and pulp mill for an estimated $812 million in cash, subject to closing adjustments for net debt and net working capital.

A total of 2,300 people work at the Kwidzyn mill and it is capable of producing 740,000 tonnes of folding boxboard, uncoated freesheet, specialty kraft papers, and market pulp in an average year on four machines.

International Paper announced December 3, 2020, it was planning to spin-off its Printing Papers business into one standalone, publicly-traded company to focus on its corrugated packaging and absorbent fiber businesses.

Kwidzyn’s sale presents International Paper with an opportunity to realize substantial incremental cash proceeds and a premium but otherwise does not alter its plans.

Under customary closing conditions and regulatory approvals, International Paper expects the transaction to close in the third quarter of 2021, following consultation with the appropriate employee representatives before agreeing.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Knox Daily
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.