International Paper sells beverage packaging business

International Paper on January 1 completed the sale of its North American beverage packaging operations to Carter Holt Harvey Limited for approximately $413 million.

In December 2006, the company agreed to sell its entire beverage packaging business to New Zealand-based Carter Holt Harvey. The North American portion of the sale, completed January 31, represents the majority of the business. The beverage packaging business also includes wholly owned subsidiaries in China, South Korea and Taiwan, and joint ventures in Latin America, Israel and Saudi Arabia. The sale of these assets to Carter Holt Harvey is expected to close later in the first quarter, at which time International Paper will receive the remainder of the proceeds from the transaction.

The North American beverage packaging assets include gable-top beverage converting facilities in California, Florida, Massachusetts, Michigan, North Carolina, and Ontario and Quebec, Canada; the Evergreen Packaging manufacturing facility in Iowa, and the Pine Bluff mill in Arkansas.

International Paper 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, Latin America and Asia, as well as xpedx, an extensive North American merchant distribution system.