International Paper announced it signed a definitive agreement to purchase SCA's packaging business in Asia for $200 million in cash, subject to post-closing adjustments. International Paper expects to complete the purchase in the second quarter of 2010, subject to regulatory approval of the transaction in China.
"We're buying good facilities at a good price as well as gaining an excellent team of 4,500 employees," said Paul Brown, president, IP Asia. "SCA's facilities complement our existing converting system of 12 corrugated box plants, which are principally in China. The combination strengthens our packaging business in Asia and will make it more competitive, more profitable and better able to serve customers."
The SCA packaging business in Asia, which is primarily in China, consists of 13 corrugated box plants and two specialty packaging facilities.
SOURCE: International Paper