MEMPHIS, TN - International Paper will sell its Temple-Inland Building Products division to Georgia-Pacific LLC for $750 million in cash. The transaction is expected to be completed in the first quarter of 2013.

The agreement, announced Dec. 13, includes Temple-Inland's 16 wood and panel manufacturing facilities: five solid wood mills, four particleboard plants, two MDF plants, a fiberboard plant and four gypsum wallboard plants located primarily in the southeastern and eastern portions of the United States.

IP acquired Temple-Inland in February 2012. The company said it intends to use the proceeds obtained from the sale to G-P to reduce some of IP's debt.

"While not core to IP's strategy, Temple-Inland Building Products is an industry leader," IP Chairman and CEO John Faraci said in a statement. "I am pleased to have reached a deal that recognizes the strength of the business and provides excellent value for IP shareowners."

“This acquisition is a long-term investment that will create value for our customers and our company,” G-P CEO and President Jim Hannan said in a statement. “These high-quality assets with teams of talented employees are strategically located near large, growing regions of building products customers and will fit well into our existing operations. This will allow us to expand our geographic footprint and enhance our service to new and existing customers.”

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