International Paper Agrees to Purchase SCA's Asia Packaging Business

Strengthens International Paper's current packaging business in Asia

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Apr 26, 2010, 06:17 ET

MEMPHIS, Tenn., April 26 /PRNewswire-FirstCall/ -- International Paper (NYSE: IP), a global leader in the paper and packaging industry, today announced it signed a definitive agreement to purchase SCA's packaging business in Asia for $200 million in cash, subject to post-closing adjustments. International Paper expects to complete the purchase in the second quarter of 2010, subject to regulatory approval of the transaction in China.

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"We're buying good facilities at a good price as well as gaining an excellent team of 4,500 employees," said Paul Brown, president, IP Asia. "SCA's facilities complement our existing converting system of 12 corrugated box plants, which are principally in China. The combination strengthens our packaging business in Asia and will make it more competitive, more profitable and better able to serve customers."

The SCA packaging business in Asia, which is primarily in China, consists of 13 corrugated box plants and two specialty packaging facilities.

About International Paper

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers, industrial and consumer packaging and distribution. Headquartered in Memphis, Tenn., the company employs about 56,000 people in more than 20 countries and serves customers worldwide. 2009 net sales were more than $23 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

This news release contains 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 relate to: (i) the ability of the parties to successfully consummate the transaction contemplated by the sale agreement without a purchase price adjustment; (ii) the receipt of regulatory approval for the transaction; (iii) the successful closing of the transaction within the estimated timeframe; and (iv) the failure to realize synergies and cost-savings from the transaction or delay in realization thereof. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

SOURCE International Paper