International Paper Co. has announced a merger of its North American packaging business with Graphic Packaging Holding Co., according to several news reports.
The transaction is valued at $1.8 billion. According to Reuters, Graphic Packaging will own 79.5 percent of the partnership and will be sole operator. The partnership is valued at $6 billion and will assume $660 million of International Paper debt.
"We will own 20.5 percent of the company, but the particular plants under this operation will be run by them (Graphic Packaging Holding)," said Tom Ryan, corporate communications officer for International Paper.
The deal focuses on two plants on the IP side-the mill in Texarkana and Augusta, Ga.
"Other manufacturing plants are also involved, spread throughout the U.S.," Ryan said. These include plants in South Carolina, Ohio, Illinois, California, South Carolina,
Wisconsin and the United Kingdom.
A total of 3,900 employees are involved in the U.S. and the U.K.
The transaction is scheduled to close in early 2018.