MEMPHIS, TN — International Paper (IP), a global paper and packaging company, on Mar. 17 announced it has signed an agreement with Weyerhaeuser to purchase its Containerboard, Packaging and Recycling  business for $6 billion in cash, subject to post-closing adjustments. IP expects to close the deal in the third quarter of 2008, subject to customary closing conditions, including regulatory review and receipt of financing.

“This deal represents a compelling opportunity for International Paper and our shareowners at a very attractive valuation,” said chairman and CEO John Faraci. “Integrating Weyerhaeuser’s CBPR business into our North American packaging platform fits very well with our strategy to improve our earnings, cash flow and returns by strengthening existing businesses. We expect the combined packaging business will generate stronger cash flow and higher EBITDA margins than either standalone business.”

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