International Paper agrees to sell 163,000 acres of land for about $200 million
By APThursday, July 22, 2010
International Paper agrees to sell land for $200M
MEMPHIS, Tenn. — Paper and packaging producer International Paper Co. said Thursday it agreed to sell 163,000 acres of land in the southeastern U.S. to a Rock Creek Capital affiliate for about $200 million.
The company said it will receive a minimum of $160 million when the deal closes. The rest, plus interest, will be paid within three years.
International Paper said it also will receive 20 percent of the affiliate’s profit when it reaches certain financial returns. The deal is expected to close in the third quarter.
The company said in a statement that the sale “will substantially complete the monetization of our forest land and realty holdings.”
International Paper has been fighting rising costs and sinking demand for its products. The company has shut plants and laid off workers.
Shares of International Paper rose $1.10, or 4.7 percent, to $24.59 in afternoon trading. The stock has ranged from $17.23 to $29.25 over the past year.
