International Paper to sell Building Products unit to Georgia-Pacific for $750 mn
14 Dec 2012
International Paper Co (IP) yesterday agreed to sell the Building Products business of its Temple-Inland unit to Georgia-Pacific for $750 million in cash, in order to focus on its core packaging business.
The business, which sells gypsum, lumber and particle board for home construction, came as a part of its recent acquisition of Texas-based smaller rival Temple-Inland for $3.7 billion.
The Temple-Inland Building Products unit manufactures a wide array of building products at 16 facilities across eight states, primarily in the southeastern and eastern regions of the US.
These products include gypsum, lumber, fiberboard, medium density fiberboard and particle board.
Atlanta, Georgia-based Georgia-Pacific, which expects the deal to close in the first quarter of 2013, said that the acquisition will allow it to expand its geographic footprint and enhance its service to new and existing customers.
"This acquisition is a long-term investment that will create value for our customers and our company,'' said Jim Hannan, Georgia-Pacific CEO and president, in a statement. ''These high-quality assets with teams of talented employees are strategically located near large, growing regions of building products customers and will fit well into our existing operations.''
