IP completes sale of forestland

 

31 October 2006 — Memphis (TN): International Paper (IP) has completed the previously announced sale of 900,000 acres of forestland in Louisiana, Texas and Arkansas to TimberStar Southwest for approximately $1.13 billion in cash.

 

Under the terms of the transaction, both parties have entered into a 50 year fibre supply agreement for IP’s pulp and paper mills as well as 30 year agreement for IP’s wood products facilities, both at market prices.

 

The transaction was announced in April as part of the company’s sale of the majority of its US forestlands.