27 June 2006 – Roanoke Rapids (NC): International Paper (IP) has announced plans to sell its Kraft Paper business to Stone Arcade Acquisition Corp for $155 million.
Stone Arcade may pay up to $60 million extra in five years if performance goals are met, IP revealed.
The sale of the division, which generated $220 million in sales for the company last year, is part of IP’s plan to refocus its business on making uncoated paper, like that used in copying machines and packaging materials.
Stone Arcade’s chairman and CEO Roger Stone said: "The acquisition of IP’s Kraft Paper business is an important first step for our company. It provides us with a very solid platform which we hope to expand. We look forward to working with the current management group to develop internal growth opportunities while we simultaneously explore strategic acquisitions."