International Paper sells its North American consumer packaging business to Graphic Packaging Holding in a transaction valued at $1.8 billion, company said in a statement. IP plans to use $660 million in cash proceeds from a loan being assumed by Graphic Packaging to pay down existing debt. IP will also receive a 20.5% ownership interest valued in a subsidiary of Graphic Packaging that will hold the assets for the combined business. The stake is valued at $1.14 billion. The transaction is expected to close in the early part of 2018."After evaluating a range of strategic options, we believe this transaction represents excellent value for IP's shareholders," said International Paper Chairman and CEO Mark Sutton. "Investing in Graphic Packaging gives IP the opportunity to benefit from a much stronger value-creation consumer packaging platform, while allowing us to remain focused on growing value in our core businesses. Our North America Consumer Packaging business has a talented team, very good assets and great customers, and I am confident of the results the combined business will achieve."
The transaction valued at $1.8 billion.
