| PAPER INDUSTRY NEWS -APRIL 2004 |
This page contains pulp and paper industry news for April 2004
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NEWS APRIL 2004
Georgia-Pacific to sell indirect interest in Brazilian
pulp company
Georgia-Pacific Corp. plans to sell all of its interests in three Brazilian
companies to an undisclosed party for $75 million.
The companies own a minority, non-voting interest in Brazilian pulp company Aracruz Celulose.
Atlanta-based Georgia-Pacific (NYSE: GP) expects after-tax proceeds of $56 million from the sale and expects to record a $10 million gain upon closing, which is expected during second quarter of 2004. The company plans to use the proceeds to further reduce its debt.
Georgia-Pacific acquired the holding as part of its acquisition of Fort James Corp. in 2000. Aracruz Celulose produces bleached hardwood kraft market pulp and eucalyptus pulp, which is a high-quality variety of hardwood pulp used by paper manufacturers to produce a wide range of products, including premium tissue, printing and writing papers, liquid packaging board and specialty papers.
"This agreement is another step forward in our ongoing rationalization of non-strategic assets," said A.D. "Pete" Correll, Georgia-Pacific chairman and CEO. "We have determined that holding these interests is not necessary to meet our limited needs for eucalyptus pulp and that converting this investment to cash is of greater value to our shareholders."
In March, Georgia-Pacific reported plans to sell its building products distribution business to a new company owned by Cerberus Capital Management, a private New York-based investment firm, and members of the distribution business' management team. That overall transaction is valued at $810 million, which assumes $630 million of working capital at closing and includes the separate sale of the business' real estate assets for $100 million. Closing is expected to occur during the second quarter and the proceeds will be used to reduce debt.
Mayr-Melnhof to buy Spanish paperboard carton business
Mayr-Melnhof Iberican, a subsidiary of
Austria-based Mayr-Melnhof Karton, has agreed to buy Alcan's
paperboard carton business in Spain, which Alcan says it is selling because "it
has become a non-strategic asset for us." The business supplies folding cartons
used to package food and beverage products and detergents.
International Paper to Acquire Box USA
STAMFORD, CT, USA , 21 April 2004 /PRNewswire-FirstCall/ -- International
Paper (NYSE: IP) today announced it has agreed to acquire Box USA Holdings,
Inc., one of America's leading corrugated packaging companies. This acquisition
is consistent with International Paper's strategic direction to grow its three
core businesses of paper, packaging and forest products.
The terms of the transaction were not disclosed. The transaction is subject to normal closing conditions, including expiration or termination of the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
"The acquisition of Box USA will provide improved access to markets, better integration between mills and converting plants, and other operating synergies. We believe that the acquisition of a well-respected, customer focused packaging company like Box USA will enhance the value of our expanded industrial packaging business," said John Faraci, chairman and chief executive officer.
"Box USA is a well-run company with a strong reputation for customer service. By combining Box USA with International Paper's existing network of 48 domestic industrial packaging facilities, and our consumer packaging and distribution businesses, we will be well positioned as the supplier of choice in the packaging industry. We remain dedicated to providing top quality products, excellent service and value-added solutions to our customers," Faraci noted.
Box USA, based in Northbrook, Ill., is America's largest independent packaging producer. The company employs 2,300 people at 23 industrial packaging converting facilities across the country and a containerboard mill. Box USA also has a partial ownership in another mill. Box USA supplies a wide range of markets with a strong presence in the food, beverage and general industrial segments with wide geographic coverage.
International Paper's industrial packaging business is made up of ten paper mills and 70 converting facilities. They are a leading producer of industrial packaging solutions for more than 8,500 customers around the world.
International Paper (http://www.internationalpaper.com) is the world's largest paper and forest products company. Businesses include paper, packaging, and forest products. As one of the largest private forest landowners in the world, the company manages its forests under the principles of the Sustainable Forestry Initiative(R) (SFI(SM)) program, a system that ensures the continual planting, growing and harvesting of trees while protecting wildlife, plants, soil, air and water quality. Headquartered in the United States, International Paper has operations in over 40 countries and sells its products in more than 120 nations.
Statements in this press release that are not historical are forward- looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including but not limited to, the strength of demand for the company's products and changes in overall demand, the effects of competition from foreign and domestic producers, changes in the cost or availability of raw materials, unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations, the ability of the company to continue to realize anticipated cost savings, performance of the company's manufacturing operations, changes related to international economic conditions, and the ability to effectively integrate acquired businesses. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
SOURCE International Paper
04/21/2004
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