International Paper recently announced that it has entered into an agreement to purchase Weyerhaeuser's pulp business. Under the terms of the agreement, International Paper will acquire five pulp mills and two converting facilities that produce fluff pulp, softwood pulp and specialty pulp for a number of consumer applications including diapers, other hygiene products, tissue and textiles.

Because the transaction is a purchase of assets, International Paper expects to realize a tax benefit with an estimated net value of approximately $300 million. Including this benefit, the net price is approximately $1.9 billion. The acquisition is expected to close in the fourth quarter of 2016.

"Weyerhaeuser's pulp business has an outstanding customer base served from low-cost, well-run assets that complement our existing system and offers significant synergy opportunities," said Mark Sutton, International Paper chairman and CEO. "This transaction will position us as the premier global supplier of fluff pulp and will enhance our ability to generate additional free cash flow."

Weyerhaeuser's pulp business has approximately 1,900 employees throughout the United States, Canada and Poland. The combined business will provide the company flexibility to manage a wide portfolio of products to meet customer needs.

Headquartered in Memphis, Tennessee, International Paper is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The company employs approximately 55,000 people and is strategically located in more than 24 countries.

For more information, visit www.internationalpaper.com.