International Paper Completes Sale of Coated/SC Papers Business
Aug. 01, 2006 - International Paper said that it has completed the previously announced sale of its coated and supercalendered papers business to CMP Holdings LLC, a subsidiary of Verso Paper Holdings LLC, an affiliate of Apollo Management L.P., for approximately $1.4 billion, subject to certain post-closing adjustments.
The deal includes approximately $30 million in the form of a 10-percent limited partnership interest in CMP Investments L.P., the parent company of CMP Holdings. This interest includes the right to receive certain additional payments contingent upon the buyer's achievement of certain investment return hurdles.
In a separate transaction, International Paper has agreed to sell the Sartell Hybrid Poplar Farm to CMP Fiber Farm LLC, a subsidiary of CMP Investments.
The coated and supercalendered papers business, which will be renamed Verso Paper Holdings LLC post-closing, annually produces approximately 1.7 million tons of coated freesheet and coated groundwood papers for the magazine, catalog and retail insert markets. It includes four paper mills, located in Jay, Maine; Bucksport, Maine; Quinnesec, Mich.; and Sartell, Minn., and generated $1.6 billion in sales in 2005. Its major brands are Advocate(R), Influence(R), Liberty(TM), Savvy(R), Trilogy(R) and Velocity(TM). The business, which will remain headquartered in Memphis, Tenn., employs approximately 3,000 people.
SOURCE: International Paper