International Paper completes purchase of Weyerhaeuser's pulp business
International Paper has completed its acquisition of Weyerhaeuser's pulp business for approximately $2.2B in cash, subject to post-closing adjustments. International Paper expects to realize a tax benefit with an estimated net present value of approximately $300M, and expects annual synergies of approximately $175M by the end of 2018, which will require the need for one-time costs of approximately $85M. In this transaction, International Paper acquired five pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp products for a number of consumer applications including diapers, other hygiene products, tissue, and textiles. The acquired business has approximately 1,900 employees around the world, with manufacturing operations based in Canada, Poland and the U.S. The combined businesses will be called Global Cellulose Fibers, led by senior VP Jean-Michel Ribieras, and reported as a separate business segment beginning with the company's release of earnings for Q4.