MEMPHIS, Tenn., Feb. 10, 2012 /PRNewswire/ -- International Paper
Company (NYSE: IP) and Temple-Inland Inc. (NYSE: TIN) today
announced that they have reached an agreement with the Antitrust
Division of the U.S. Department of Justice ("DOJ") with respect to
International Paper's acquisition of Temple-Inland. As part
of the agreement, the DOJ has entered into a consent decree with
International Paper and Temple-Inland that allows the combination
to proceed. The companies expect to complete the transaction
promptly.
(Logo: http://photos.prnewswire.com/prnh/20020701/IPLOGO
)
Under the terms of the consent decree filed in federal court in
the District of Columbia, the
combined company will undertake the post close divesture of 970,000
tons of containerboard mill capacity within four months, with the
possibility of two 30-day extensions. The company agreed to divest
Temple-Inland's facilities in Ontario, California and New
Johnsonville, Tennessee, and International Paper's facility
in Hueneme, California. International Paper reaffirms that it
expects to achieve at least $300
million of synergies within twenty-four months of
closing.
International Paper Chairman and CEO John Faraci said, "We are pleased to have
reached an agreement with the DOJ that addresses their concerns and
preserves the value in the combination of these two fine companies.
As we take the final steps to closing, we look forward to a smooth
integration and to realizing the substantial benefits this
transaction provides our customers, employees and
shareholders."
About International Paper
International Paper (NYSE: IP) is a global paper and packaging
company with manufacturing operations in North America, Europe, Latin
America, Russia,
Asia and North Africa. Its businesses include uncoated
papers and industrial and consumer packaging, complemented by
xpedx, the Company's North American distribution company.
Headquartered in Memphis,
Tennessee, the company employs about 61,000 people in more
than 24 countries and serves customers worldwide. 2011 net sales
were $26 billion. For more
information about International Paper, its products and stewardship
efforts, visit internationalpaper.com.
About Temple-Inland
Temple-Inland Inc. is a manufacturing company focused on
corrugated packaging and building products. The fully integrated
corrugated packaging operation consists of 7 mills and 59
converting facilities. The building products operation manufactures
a diverse line of building products for new home construction,
commercial and repair and remodeling markets. Temple-Inland's
address on the World Wide Web is www.templeinland.com.
Certain statements in this press release may be considered
forward-looking statements. These statements reflect
management's current views and are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in these statements. Factors which
could cause actual results to differ include but are not limited
to: (i) the level of our indebtedness and increases in
interest rates; (ii) industry conditions, including but not limited
to changes in the cost or availability of raw materials, energy and
transportation costs, competition we face, cyclicality and changes
in consumer preferences, demand and pricing for our products; (iii)
global economic conditions and political changes, including but not
limited to the impairment of financial institutions, changes in
currency exchange rates, credit ratings issued by recognized credit
rating organizations, the amount of our future pension funding
obligation, changes in tax laws and pension and health care
costs; (iv) unanticipated expenditures related to the cost of
compliance with existing and new environmental and other
governmental regulations and to actual or potential litigation; (v)
whether we experience a material disruption at one of our
manufacturing facilities and risks inherent in conducting business
through a joint venture; (vi) risk and uncertainties associated
with the divestitures required by the DOJ consent decree; (vii) the
failure to realize synergies and cost savings from the
Temple-Inland transaction or delay in realization thereof; and
(viii) our ability to achieve the benefits we expect from all other
strategic acquisitions, divestitures and restructurings. These and
other factors that could cause or contribute to actual results
differing materially from such forward-looking statements are
discussed in greater detail in the company's Securities and
Exchange Commission filings. We undertake no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise.
WEBCAST
The company will hold a webcast to go over the announcement in
more detail starting at 1:30 pm. EST,
12:30 pm. CST. All interested
parties are invited to listen to the webcast live via the company's
Internet site at http://www.internationalpaper.com by clicking on
the Investors tab and going to the Presentations page. Parties who
wish to participate in the webcast via teleconference may dial +1
(706) 679-8242 or, within the U.S. only, (877) 316-2541 and ask to
be connected to the International Paper's Settlement Agreement
Call. The conference ID number is 50817955. Participants should
call in no later than 1:15 pm EST
12:15 pm. CST.
An audio-only replay will be available for four weeks following
the call. To access the replay, dial +1 (855) 859-2056 or (404)
537-3406 and when prompted for the conference ID, enter
50817955.
SOURCE International Paper Company