International Paper (IP), Memphis, Tenn., will sell its beverage packaging business to Carter Holt Harvey (CHH) for about $500 million. The agreement is subject to certain adjustments. The transaction is expected to close in the first quarter of next year, subject to various closing conditions.
This business includes gable-top beverage converting facilities in Massachusetts, Michigan, North Carolina, Florida, California, and Ontario and Quebec, Canada. It also includes the Evergreen Packaging manufacturing facility in Iowa and the Pine Bluff board mill in Arkansas. It has wholly owned subsidiaries in China, South Korea and Taiwan and joint ventures in Latin America, Israel and Saudi Arabia. It employs approximately 3,000 and produces more than 680,000 tons annually of high-quality packaging for juice, dairy and other products, along with coated groundwood paper. Net sales last year were approximately $860 million.
CHH is Australasia’s leading forest products company with market leading positions in the building supplies, pulp, paperboard, and packaging markets. The pulp, paper and paperboard division consists of four of New Zealand’s largest pulp and paperboard mills, along with vertically integrated carton and corrugated packaging operations.
“We’re proud of our history and look forward to taking the business to new heights with our new owners,” says Scott Murchison, vice president and general manager of the beverage packaging business.
IP also sold Arizona Chemical, a supplier of chemicals to the adhesives, inks and coatings markets, to Rhone Capital III L.P. for about $485 million.
Friday, December 29, 2006
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