Displaying items by tag: International Paper

International Paper (NYSE: IP) today announced that it has completed the acquisition of a 75 percent stake in Andhra Pradesh Paper Mills (APPM). International Paper purchased 53.5 percent of the APPM shares from Mr. L.N. Bangur and related family members and affiliates for approximately US$226 million in cash. These sellers have also entered into a covenant not to compete, for which they received a cash payment of US$57 million. In addition, International Paper acquired an additional 21.5 percent of APPM shares in a public tender offer completed on October 8, 2011, for approximately US$105 million in cash. Paul Brown, president, IP India, will become executive chairman of the APPM Board of Directors, effective today.

"As we complete this phase of the process and move into majority ownership, International Paper is well-positioned to help serve a rapidly growing Indian market," said John Faraci, International Paper Chairman and Chief Executive Officer. "We look forward to building on Andhra Paper's tradition of excellence while introducing the global best practices that make International Paper an industry leader. We are delighted to welcome these new employees to International Paper."

APPM is one of the leading integrated paper manufacturers in India, and operates two mills with a combined annual capacity of 250,000 tonnes of uncoated freesheet paper. The existing management team and 2,500 employees of APPM will continue to operate the business, supplemented by additional International Paper leadership and professional and technical resources.

Note: US$ monetary amounts are based on an average Indian Rupee to U.S. Dollar exchange rate of INR 48.25 per US$.

SOURCE International Paper


Published in Asian News
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ip12oct sharonInternational Paper has announced the appointment of Sharon R. Ryan to the position of Senior Vice President, General Counsel and Corporate Secretary effective November 1, 2011. The Board of Directors approved the promotion of Ryan following her role as Acting General Counsel since May 1, 2011. Ryan will report to John Faraci, International Paper's Chairman and Chief Executive Officer and will be based in the Company's Memphis, Tenn., headquarters.

"Sharon brings a combination of industry knowledge, integrity, experience and practicality to this critical position," said John Faraci. "I am confident that Sharon will continue to make a significant contribution in helping International Paper achieve our strategic goals, while fulfilling her professional responsibilities in a principled manner."

Sharon Ryan joined International Paper in 1988 and in 1992 was named Vice President and General Counsel of Masonite Corporation, a former International Paper subsidiary. In 1997, Ryan was named General Counsel - Building Materials Group and became General Counsel of Consumer Packaging and Corporate Sales and Marketing in 2000. Ryan was promoted to Associate General Counsel - Corporate Law in 2006, and in 2009 assumed the additional role of Chief Ethics and Compliance Officer. She was appointed Vice President of International Paper in February 2011 and in May 2011 she became Acting General Counsel and Corporate Secretary.

Ryan, 52,received her undergraduate degree from George Washington University in 1981. In 1985, she received her J.D. degree from Boston College Law School where she was an editor for the Boston College Law Review.

SOURCE International Paper

Published in North American News
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International Paper (NYSE:IP - News) will release third quarter 2011 earnings on Thursday, October 27, before the opening of the New York Stock Exchange. The company will host a webcast to discuss earnings and current market conditions at 9 a.m. EDT (8 a.m. CDT) that day.

All interested parties are invited to listen to the webcast via the company's Internet site at http://www.internationalpaper.com by clicking on the Investors tab and going to the Webcasts and Presentations page. A replay of the webcast will also be on the Web site beginning approximately two hours after the call.

Parties who wish to participate in the webcast via teleconference may dial +1 (706) 679-8242 or, within the U.S. only, (877) 316-2541, and ask to be connected to the International Paper Third Quarter Earnings Call. The conference ID number is 12353760. Participants should call in no later than 8:45 a.m. EDT (7:45 a.m. CDT). An audio-only replay will be available for four weeks following the call. To access the replay, dial +1 404-537-3406 or, within the U.S. only, (855) 859-2056, and when prompted for the conference ID, enter "12353760."

International Paper (NYSE:IP - News) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee the company employs about 59,500 people in more than 24 countries and serves customers worldwide. 2010 net sales were more than $25 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.

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inter beaverThe International Paper Beaverton Bag Plant, which began production on Sept. 16, 1961, is celebrating the 50th anniversary of producing high-quality, environmentally friendly paper bags for its customers. "Our bags are a great environmental choice as they are recyclable, reusable and produced using renewable resources," said Ron Gale, plant general manager.

The Portland City Council has recognized the benefits of paper and recently passed legislation limiting the use of plastic bags within city limits. The move is designed to lessen the impact on the environment. "Paper recycling is an environmental success story not only in the state of Oregon, but throughout the country. Paper bags are recycled at a rate between 50 percent and 72 percent, compared to 10 percent to 14 percent for plastic bags," said Craig Williams, general manager of International Paper's Kraft Bag business. "This is an exciting time for the families and team members of the Beaverton Bag Plant to celebrate 50 years of service to the greater Oregon area, and to assist current and new customers with the transition from plastic," Gale said.

International Paper employs more than 800 workers in the state of Oregon. The Beaverton Plant will recognize 50 years of excellence with a celebration to congratulate the team members and families that have worked at and supported the facility and its customers.

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International Paper (NYSE: IP) and Temple-Inland Inc. (NYSE: TIN) have announced that they have entered into a definitive merger agreement under which International Paper will acquire all of the outstanding common stock of Temple-Inland for $32.00 per share in cash, plus the assumption of $600 million in Temple-Inland's year end debt. The total transaction value is approximately $4.3 billion.

The combination, which has been approved by the Boards of both companies, brings together two strong North American corrugated packaging businesses to create an even stronger company. It offers numerous benefits for the shareholders and customers of both companies, and is consistent with International Paper's focus on achieving and sustaining cost of capital returns throughout the cycle. The transaction is expected to be accretive to International Paper's shareholders in year one after closing. It is expected to close in the first quarter of 2012.

International Paper Chairman and CEO John Faraci said, "The strategic benefits of this combination are clear and we are pleased to be able to move forward on terms that are financially attractive for both sets of shareholders. Acquiring Temple-Inland enhances our ability to generate additional cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we integrate our businesses and create an even stronger company with substantial benefits for our customers, employees and shareholders."

Temple-Inland Chairman and Chief Executive Officer Doyle R. Simons said, "This transaction creates value for both Temple-Inland and International Paper shareholders. The combined company will be positioned to be a leader in providing high quality products for its customers."

The combination is expected to yield synergies of approximately $300 million annually within 24 months of closing, derived primarily from the areas of operations, freight, logistics, selling expense and overhead. The companies have a shared focus on low-cost mills, complementary converting systems and high levels of box integration - Temple-Inland's products and manufacturing facilities are an excellent strategic fit with International Paper's current offerings and facilities.

As contemplated by the merger agreement, International Paper will terminate its existing tender offer to acquire all of the outstanding common shares of Temple-Inland for $30.60 per share, and Temple-Inland will hold a special meeting of its stockholders to vote on the transaction. In addition to the approval of Temple-Inland's stockholders, the transaction is subject to customary closing conditions, including antitrust approvals.

Evercore Partners and UBS Investment Bank served as financial advisors to International Paper and Goldman, Sachs & Co. served as financial advisor to Temple-Inland. Debevoise & Plimpton LLP served as International Paper's legal counsel and Temple-Inland was advised by Wachtell, Lipton, Rosen & Katz.

SOURCE International Paper

 

Published in North American News

International Paper and Atlas Holdings today signed a definitive agreement to combine their consumer packaging solutions businesses, pending regulatory approval and other customary closing conditions. As a result of the agreement, Shorewood Packaging and AGI World, two leading global specialty packaging companies, will become AGI-Shorewood, creating one of the largest and most innovative specialty packaging businesses in the world with operations in North America, Europe, Asia, Australia and Latin America.

"For more than a decade, Shorewood Packaging has been an important part of International Paper and has made many contributions to our company, particularly through leadership in innovation and creative services for customers," said Tom Kadien, senior vice president of International Paper's Consumer Packaging and IP Asia businesses. "By merging Shorewood with AGI, our employees and our customers will have many more options and opportunities in the future, and we will continue to be a strong partner in those efforts."

"We are excited about this combination, bringing together two businesses with great legacies and creating a new global leader with unparalleled capability to serve the world's premier consumer product, media and entertainment and tobacco companies," said Andrew Bursky, chairman of Atlas Holdings. "We are committed to building the new AGI-Shorewood around the needs of our customers, providing innovation, efficiency and exceptional service through an unrivaled network of global packaging and creative service facilities."

Once the transaction is complete, the new company will employ nearly 4,000 people and will operate 24 manufacturing facilities around the world. In addition, AGI-Shorewood will be a nimble supplier, strategically focused on its key consumer packaging, media and entertainment, and tobacco packaging markets, which include beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods and tobacco and specialty gravure.

Mike Ukropina, currently president, Shorewood Packaging, will lead the new AGI-Shorewood organization as president and CEO. The remainder of the AGI-Shorewood leadership team will include:

  • Mark Caines, currently CEO, AGI North America, as CEO, AGI-Shorewood North America
  • Tony Garnish, currently CEO, AGI Europe, as CEO, AGI-Shorewood Europe
  • Lucy Tzou, currently general manager, Shorewood Packaging and IP Foodservice Asia, as CEO, AGI-Shorewood Asia and Global Gravure
  • Don Eldert, currently CFO, Atlas Material Holding Corporation, as EVP & CFO, AGI-Shorewood

"AGI and Shorewood are an excellent fit," said Ukropina. "Both companies are made up of extremely talented people who are unrivaled in customer focus and also share a deep commitment to safety, a drive for continuous improvement and a belief in helping people grow and succeed. I'm looking forward to the opportunities that lie ahead."

The merging of Shorewood with AGI reflects Atlas' investment strategy of purchasing and successfully transitioning divisions of larger corporate parents into strong independent companies.

Upon closing of the transaction, Atlas will own 100 percent of the combined AGI-Shorewood business in the U.S. and International Paper will own a 40 percent interest in the combined AGI-Shorewood business outside of the U.S. The various regional transactions are expected to close before the end of 2011.

Published in North American News
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International Paper has announced that it has determined to extend the expiration date for now of its tender offer for all outstanding common shares of Temple-Inland Inc. (NYSE: TIN) for $30.60 in cash. Accordingly, the offer and withdrawal rights are now scheduled to expire at 5 p.m., Eastern Time on September 8, 2011, unless further extended. The tender offer was previously scheduled to expire at 5 p.m., Eastern Time on Aug. 9, 2011.

Based on a preliminary count by the depositary for the tender offer, approximately 8.5 million shares of Temple-Inland common stock have been tendered and not withdrawn to date. Except for the extension of the expiration date, all other terms and conditions of the tender offer remain unchanged. If the tender offer is extended further, International Paper will issue a press release announcing the extension at or before 9 a.m., Eastern Time, on the next business day after the date the tender offer was scheduled to expire.

Temple Inland's stockholders may obtain copies of all of the offering documents free of charge at the SEC's website (www.sec.gov) or by directly requesting copies of all of the offering documents free of charge at Innisfree M&A Incorporated, the Information Agent for the offer, at (877) 456-3488 (toll-free). Banks and brokers may call collect at (212) 750-5833.

International Paper's dealer managers for the tender offer are UBS Investment Bank and Evercore Partners. Its legal advisor is Debevoise & Plimpton LLP.

SOURCE International Paper

Published in North American News

International Paper has reported second-quarter 2011 net earnings attributable to common shareholders totaling $224 million ($ $0.52 per share) compared with net earnings of $342 million ($0.78 per share) in the first-quarter of 2011 and $93 million ($0.21 per share) in the second-quarter of 2010. Amounts in all periods include the impact of special items.


Earnings from continuing operations and before special items in the 2011 second-quarter totaled $343 million ($0.80 per share), compared with $322 million ($0.74 per share) in the first- quarter of 2011 and $181 million ($0.42 per share) in the second-quarter of 2010.


Quarterly net sales were $6.6 billion in the second-quarter compared with $6.4 billion in the first-quarter of 2011 and $6.1 billion in the second-quarter of 2010.


Operating profits were $483 million in the second-quarter of 2011, compared with $585 million in the first-quarter of 2011 and $353 million in the second-quarter of 2010, all of which included special items.


“In what remains a slow and extended economic recovery, International Paper continues to demonstrate solid performance and strong free cash flow,” said John Faraci, Chairman and Chief Executive Officer. “We are the only paper and packaging company in the world with a truly global footprint, and it’s this balanced global portfolio, along with favorable cost management and a sharp focus on operations that have driven our results the last four quarters.”


SEGMENT INFORMATION
To measure the performance of the company’s business segments from quarter-to-quarter without variations caused by special items, management focuses on business segment operating profits excluding those items. Second-quarter 2011 segment operating profits and business trends, excluding special items, compared with the prior quarter are as follows:


Industrial Packaging operating profit was $269 million compared with an operating profit of $274 million ($279 million including special items) in the first-quarter of 2011. Second-quarter earnings were positively impacted by seasonally higher box shipments (generating 150 thousand tons of higher shipments), partly offset by increased mill outage costs. In addition, area flooding near the Vicksburg, Mississippi, mill caused a 49 day shutdown, approximately 80,000 tons of lost production and expenses of approximately $20 million in the quarter. Despite the lost production our domestic customers experienced no supply interruptions.


Printing Papers operating profit was $222 million ($243 million including special items) compared with an operating profit of $209 million ($201 million including special items) in the first-quarter of 2011. The second-quarter earnings improvement in North America of $32 million versus the first-quarter of 2011 reflected improved mill operations, lower planned maintenance expense, partially offset by continued increases for input and distribution fuel costs. Earnings in Europe and Brazil decreased primarily due to higher mill maintenance outage costs.


Consumer Packaging operating profit was $98 million (a loss of $33 million including special items) compared with an operating profit of $101 million ($100 million including special items) in the first-quarter of 2011. Further price realization and strong manufacturing performance helped mitigate escalating input costs in both North America and Asia and higher mill outage costs.


xpedx, the company’s North American distribution business, reported operating earnings of $14 million ($4 million including special items) compared with $12 million in the first-quarter of 2011 ($5 million including special items). The improvement in earnings was due to higher sales volumes and lower operating costs partially offset by lower margins.


Net corporate expenses for the 2011 second-quarter totaled $36 million, compared with $44 million in the first-quarter of 2011 and $54 million in the second-quarter of 2010. The decrease compared with both the 2011 first-quarter and 2010 second-quarter reflects lower supply chain project costs. The decrease compared with the 2010 second-quarter also reflects lower pension costs.


EFFECTIVE TAX RATE
The effective tax rate from continuing operations and before special items was 33% in both the second-quarter and first-quarter of 2011.

 

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Wednesday, 13 July 2011 12:02

International Paper Declares Dividend

International Paper (NYSE: IP) today declared a quarterly dividend of $0.2625 per share for the period from July 1, 2011, to September 30, 2011, inclusive, on its common stock, par value $1. This dividend is payable on September 15, 2011, to holders of record at the close of business on August 15, 2011.

 

Today the company also declared a regular quarterly dividend of $1 per share for the period from July 1, 2011, to September 30, 2011, inclusive, on the cumulative $4 preferred stock of the company. This dividend is also payable on September 15, 2011, to holders of record at the close of business on August 15, 2011.

Published in North American News
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International Paper Company announced yesturday that it is commencing a fully financed tender offer for all outstanding common shares of Temple-Inland Inc. (NYSE: TIN) for $30.60 per share in cash. The all-cash offer represents a 46% premium to Temple-Inland's closing price on June 6, 2011, the last trading day prior to public disclosure of International Paper's proposal to acquire Temple-Inland. The offer will commence tomorrow and will expire at 5:00 p.m.New York City time on August 9, 2011, unless extended.

 

International Paper chairman and CEO John Faraci said, "We believe Temple-Inland's price expectations are unrealistic and their unwillingness to engage in any meaningful discussions with respect to value has left us with no alternative but to make our offer directly to Temple-Inland shareholders. While we prefer to reach a negotiated, friendly deal, we are committed to remaining disciplined and completing this transaction at a fair price for both companies' shareholders. We are confident in our ability to secure the necessary regulatory approvals to complete this transaction in a timely manner."

 

Faraci continued, "We respect Temple-Inland, but we disagree on the realistic standalone value of the company, which we believe is currently $21 to $24 per share. The premium we are offering is substantial, the multiple is well above recent directly comparable transactions, and we are providing Temple-Inland shareholders the certainty of cash in the midst of a very uncertain economic environment. At $30.60, we believe our offer fully reflects the future business plans and economic outlook for Temple-Inland and for the sector, including the current environment and outlook for containerboard, the potential cyclical improvement in Temple-Inland's building products segment and near-term expected increases in Temple-Inland's earnings. We are confident that Temple-Inland shareholders support a transaction, and it is now incumbent upon the Temple-Inland Board to take the next step."

 

International Paper noted that its fully financed, all-cash offer represents compelling value when compared against all reasonable metrics and precedents, including:

 

  • -A 46% premium to Temple-Inland's closing price of $21.01 on June 6, 2011, the last trading day prior to public disclosure of the offer
  • -A 30% premium over the present value of average analyst price targets for a standalone Temple-Inland of $23.57
  • -A highly attractive multiple of 9.8x Temple-Inland's 2011 estimated EBITDA (9.0x excluding timber tax liability) versus forward EBITDA multiples of recent precedent transactions of -6.1x for Smurfit-Stone and 6.3x for Weyerhaeuser's corrugated packaging business, and well above Temple-Inland's average forward EBITDA multiple of 6.1x since 2008
  • -The fact that IBES research estimates for Temple-Inland's EBITDA have come down since International Paper's proposal was made public, given market expectations
  • -A significant premium to Temple-Inland's standalone value which, based on pre-offer trading and independent analyst estimates of Temple-Inland's earnings potential, International -Paper and third parties credibly estimate at $21 to $24 per share. This compares to Temple-Inland's contention that standalone value should reflect multiple expansion to near 7x applied to an above-average estimated EBITDA for 2012 - a view we believe neither investors nor third parties share
  • -Realization of the benefits from a potential cyclical improvement in Temple-Inland's building products segment, even with a recovery uncertain and likely years away
  • -The benefits of more than half of the synergies that are expected to result from the combination
  • -The certainty of cash, versus the uncertainty of any potential future benefits to shareholders that Temple-Inland's current business plan may, or may not, deliver through cyclical and operational improvement

 

International Paper has secured committed financing from UBS Investment Bank, and the offer will not be conditioned on financing. The offer will be conditioned on there being validly tendered and not withdrawn at least a majority of the total number of Temple-Inland shares outstanding on a fully diluted basis, Temple-Inland's Board of Directors redeeming or invalidating its "poison pill" shareholder rights plan, the receipt of regulatory approvals and other customary closing conditions as described in the Offer to Purchase.

 

International Paper also is filing notification tomorrow with the Federal Trade Commission ("FTC") and Department of Justice ("DOJ") as required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR). The HSR waiting period will expire on July 27, 2011 unless extended by the FTC or DOJ, which would not be unusual in these circumstances.

 

The Offer to Purchase, Letter of Transmittal and related documents will be filed tomorrow with the U.S. Securities and Exchange Commission (SEC). Temple-Inland's stockholders may obtain copies of all of the offering documents free of charge at the SEC's website (www.sec.gov) or by directly requesting copies of all of the offering documents free of charge at Innisfree M&A Incorporated, the Information Agent for the offer, at (877) 456-3488 (toll-free). Banks and brokers may call collect at (212) 750-5833. The tender offer will expire at 5:00 p.m.New York City time on August 9, 2011, unless extended in the manner set forth in the Offer to Purchase.

 

International Paper's dealer managers for the tender offer are UBS Investment Bank and Evercore Partners. Its legal advisor is Debevoise & Plimpton LLP.

Published in Financial News
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