International Paper To Sell Coated Paper Business

Share this content:

International Paper has signed a definitive agreement to sell its coated and supercalendered papers business to CMP Holdings LLC, an affiliate of private investment firm Apollo Management for approximately $1.4 billion, International Paper announced yesterday.

IP had previously announced plans to focus on uncoated papers and industrial and consumer packaging.

IP's coated and supercalendered papers business includes four paper mills, located in Jay, ME; Bucksport, ME; Quinnesec, MI.; and Sartell, MN. It annually produces approximately 2 million tons of coated freesheet and coated groundwood papers for the magazine, catalog and retail insert markets. The business, which is headquartered in Memphis, TN, employs approximately 3,000 people and generated $1.6 billion in sales in 2005.

The transaction is expected to close in mid-summer 2006.

CMP Holdings will acquire the business for approximately $1.37 million in cash plus approximately $30 million in the form of a 10-percent limited partnership interest in CMP Investments LP, the parent company of CMP Holdings. This interest includes the right to receive additional payments contingent upon the buyer's achievement of certain investment return hurdles.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here