IP, a US-headquartered company that employs approximately 70,000 people located in more than 24 countries, reported that it will hold a 75% stake in the new entity. Orsa’s assets include three containerboard mills and four box plants, which make up Jari’s former industrial packaging assets.
“International Paper has been in Brazil for over 50 years and we are excited about this partnership as a platform to enter the corrugated packaging business in this strategic region,” said John Faraci, chairman and chief executive officer.
“This investment fits our strategy to grow our packaging business globally and allocate capital to opportunities that deliver returns well above our cost of capital.”
The value of IP’s investment is approximately $470m at current exchange rates.
The closure of the deal completes the transaction first announced in October of 2012.
