reached an agreement to sell its Temple-Inland Building Products division to Georgia-Pacific LLC for $750 million in cash, subject to certain pre-and post-closing adjustments.
According to a news release from International Paper:
The assets to be sold include 16 manufacturing facilities - five solid wood mills, four particleboard plants, two medium-density fiberboard plants, one fiberboard plant and four gypsum wallboard plants.
The lumber division at the Rome mill is included in the sale.
“While not core to IP's strategy, Temple-Inland Building Products is an industry leader,” said John Faraci, Chairman and Chief Executive Officer. “I am pleased to have reached a deal that recognizes the strength of the business and provides excellent value for IP shareowners.”
Temple-Inland Building Products facilities are located across eight states, primarily in
the southeastern and eastern portions of the United States, with access to five of the
top 12 housing markets.
The transaction is expected to be completed in the first quarter of 2013, subject to
satisfaction of various closing conditions, including obtaining required governmental
approvals. IP intends to use the proceeds from the sale to reduce its debt.
The Rome News-Tribune is seeking more information on details of its impact here.