International Paper sells kraft papers business for $215M

International Paper on January 2 closed on the sale of its kraft papers business to Stone Arcade Acquisition Corp. for approximately $155 million and two payments totaling up to $60 million, payable five years from the close of the transaction, contingent upon business performance. The kraft papers business includes the Roanoke Rapids, N.C., mill and the Fordyce, Ark., Ride Rite dunnage bag plant.

The kraft papers business, which will now be known as KapStone Paper and Packaging Corporation, produces approximately 400,000 tons of kraft papers, used in a variety of end-use products including approximately 9 million Ride Rite dunnage bags. The business employs approximately 700 people.

Headquartered in the United States, International Paper has been a leader in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the U.S., Europe, South America and Asia.