Grupo Orsa, IP Finalize Formation of Orsa International Paper in Brazil
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International Paper, Memphis, Tenn., USA, and Brazilian corrugated packaging producer Jari Celulose, Embalagens e Papel S.A., a Grupo Orsa company, have finalized the formation of Orsa International Paper Embalagens S.A. The new entity, in which IP will hold a 75% stake, includes three containerboard mills and four box plants, which make up Jari's former industrial packaging assets. Today's closing completes the transaction announced in October 2012.
"International Paper has been in Brazil for more than 50 years and we are excited about this partnership as a platform to enter the corrugated packaging business in this strategic region," said John Faraci, chairman and CEO. "This investment fits our strategy to grow our packaging business globally and allocate capital to opportunities that deliver returns well above our cost of capital."
The value of IP's investment is approximately $470 million.
IP employs some 70,000 people and is strategically located in more than 24 countries serving customers worldwide. The company's net sales for 2011 were $26 billion. Temple-Inland Inc., which was acquired in February 2012, had 2011 net sales of $4 billion.
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