Paper and packaging giant International Paper Co. (NYSE: IP) today announced that it has sold three of its US paperboard mills for $470 plus working capital. The sale was required as part of the company’s agreement with the Department of Justice related to International’s $4.3 billion acquisition of Temple-Inland, which was completed in February.
Two of the three plants were purchased by New-Indy Containerboard LLC, a joint venture between private equity firms The Kraft Group and Schwarz Partners L.P. The third mill was purchased by Hood Companies Inc.
Shareholders don’t seem to like the deal, knocking the share price down about -2.9% to $28.35 in a 52-week range of $21.55- $36.50. One analyst said the sales price was better than the expected range of $300-$450 million.