IP Completes Acquisition of Majority Stake in Andhra Pradesh Paper Mills
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International Paper Co., Memphis, Tenn., USA, this week announced that it has completed the acquisition of a 75% stake in Andhra Pradesh Paper Mills (APPM), Hyderabad, India. IP purchased 53.5% of the APPM shares from L.N. Bangur and related family members and affiliates for approximately $226 million in cash. These sellers have also entered into a covenant not to compete, for which they received a cash payment of $57 million. In addition, IP acquired an additional 21.5% of APPM shares in a public tender offer completed on October 8, for approximately $105 million in cash. Paul Brown, president, IP India, became executive chairman of the APPM Board of Directors, effective October 14.
APPM operates two mills with a combined annual capacity of 250,000 metric tons of uncoated free sheet. The existing management team and 2,500 employees of APPM will continue to operate the business, supplemented by additional IP leadership and professional and technical resources.
"As we complete this phase of the process and move into majority ownership, International Paper is well-positioned to help serve a rapidly growing Indian market," said John Faraci, IP chairman and CEO. "We look forward to building on Andhra Paper's tradition of excellence while introducing the global best practices that make International Paper an industry leader. We are delighted to welcome these new employees to International Paper."
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