The Tennessee-based global paper and packaging company, International Paper, has signed a definitive agreement to purchase SCA's packaging business in Asia for USD200 million in cash, subject to post-closing adjustments.
The SCA packaging business in Asia, which is primarily in China, consists of 13 corrugated box plants and two specialty packaging facilities. They are expected to complement IP's manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa, as well as reinforcing the company's presence in Asia.
According to Paul Brown, the president of IP Asia, they are buying good facilities at a good price as well as gaining an excellent team of 4,500 employees. He added that SCA's facilities complement their existing converting system of 12 corrugated box plants, which are principally in China. The combination strengthens their packaging business in Asia and will make it more competitive, more profitable and better able to serve customers, said Brown.
International Paper expects to complete the purchase in the second quarter of 2010, subject to regulatory approval of the transaction in China.