International Paper Finalizes Deal with Grupo Orsa in Brazil
Jan. 14, 2013 - International Paper and Brazilian corrugated packaging producer Jari Celulose, Embalagens e Papel S.A., a Grupo Orsa company, have finalized the formation of Orsa International Paper Embalagens S.A.
The new entity, in which IP will hold a 75 percent stake, includes three containerboard mills and four box plants, which make up Jari's former industrial packaging assets. Today's closing completes the transaction announced in October of 2012.
"International Paper has been in Brazil for over 50 years and we are excited about this partnership as a platform to enter the corrugated packaging business in this strategic region," said John Faraci, Chairman and Chief Executive Officer. "This investment fits our strategy to grow our packaging business globally and allocate capital to opportunities that deliver returns well above our cost of capital."
The value of IP's investment is approximately $470 million at today's exchange rate.
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 and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2011 were $26 billion. Temple-Inland Inc., which was acquired in February 2012, had 2011 net sales of $4 billion.
SOURCE: International Paper