| International Paper Signs Agreement to Acquire Holmen Paper Madrid Mill |
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Brussels, Belgium /Madrid, Spain 16 March 2016 -- International Paper announced today that it has entered into a binding agreement with Holmen Paper to purchase Holmen's newsprint mill in Madrid, Spain, and intends to convert the facility to produce recycled containerboard. Under the terms of the agreement, International Paper would purchase the Madrid newsprint Mill, as well as associated recycling operations and a 50-percent ownership interest in a cogeneration facility. The transaction is expected to close during the second quarter of 2016, subject to certain regulatory approvals.
International Paper plans to convert the newsprint facility during the second half 2017 to produce recycled containerboard with an expected capacity of 380,000 metric tonnes, safeguarding employment prospects at the facility. The Company's aggregate investment in the project, including the purchase price and conversion costs is anticipated to be €150 million. Once completed, the converted mill will support the Company's corrugated packaging business in EMEA. Holmen and International Paper intend to work closely on a smooth transition.
"We are constantly looking at ways to provide superior value for our customers. The Madrid facility represents a strategic opportunity to grow our corrugated packaging business in EMEA by further enhancing our value proposition and offering our customers even more choices in terms of innovative, tailored and high performing packaging solutions", said Jean-Michel Ribieras, President of International Paper Europe, Middle East & Africa.
He continued: "This acquisition is a significant investment into the future of our corrugated packaging business in EMEA, our customers, our employees, and our communities, and we are excited to be making this strategic step."
About International Paper
International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging along with uncoated papers and pulp. Headquartered in Memphis, Tenn., the company employs approximately 55,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2015 were $22 billion. For more information about International Paper, its products and global citizenship efforts, visit internationalpaper.com.
In Europe, Middle East, Africa & Russia (EMEA), International Paper focuses on the production and marketing of office papers and paper-based packaging. The company is a leading supplier of highquality cutsize papers, coated and uncoated paperboard and corrugated containers for a wide range of applications. International Paper in EMEA had net sales of approximately $2.6 billion in 2015 and employs approximately 9,000 people.
Certain statements in this press release may be considered forward-looking statements. These statements reflect Company 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 include but are not limited to (i) the receipt of regulatory approvals for this transaction and the successful fulfillment or waiver of all other closing conditions without unexpected delays or conditions; (ii) the successful closing of this transaction within the estimated timeframe; (iii) industry conditions; (iv) global economic conditions and political changes; and (v) other factors that can be found in the Company's press releases and Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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