International Paper sells off more assets
International Paper continued in its course of selling off assets. It announced it would sell off its coated paper business to a US company called CMP Holdings, owned by equity group Apollo Management LP. The deal is for $1.4 billion.
International Paper has now offloaded some $9 billion of assets, as it has dropped forests and other products, with a concerted plan to concentrate on uncoated paper and packaging materials. It sold most of its US and New Zealand forest lands for $6.6 billion. (The company still has forest holdings in Russia and Brazil.)
International Paper is also trying to sell its kraft paper division (used for paper bags); wood-products chemical division Arizona Chemical; and the wood products division, making lumber and plywood. The expect return from all the sales is expected to be over $11 billion.
International Paper is redefining itself, to the point where it recently moved its headquarters from Connecticut to Memphis, to be closer to its commercial paper facilities. It is running away from some businesses, after some recent quarterly losses. It seems to be offloading all but a few core middleman businesses.
Meanwhile the sale of key resources to investment companies and out of the hands of big forestry products companies like Georgia Pacific, Louisiana Pacific, and Boise Cascade. But why Apollo Management, which has equity positions in everything from plastics to farm chemicals, retail stores (Linens 'n' Things) to heating and air conditioning. Why do they want to take over a coated paper company and who are they planning to sell it to?
10:15:00 PM 
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