(By Balachander) International Paper Co. (NYSE: IP) has agreed to sell its Temple-Inland building products division to Georgia-Pacific LLC for $750 million in cash.
The Memphis, Tennessee-based paper and packaging company said Temple-Inland building products unit is not core to its strategy and expects to use the proceeds from the sale to reduce its debt. Temple-Inland Inc. was acquired by IP in February 2012.
The assets to be sold include 16 manufacturing facilities - five solid wood mills, four particleboard plants, two medium-density fiberboard plants, one fiberboard plant and four gypsum wallboard plants.
Temple-Inland Building Products facilities are located across eight states, mainly in the southeastern and eastern portions of the United States, with access to five of the top 12 housing markets, the company noted.
The deal is expected to close in the first quarter of 2013.
In addition, the company said it plans to report a new (Non-GAAP) adjusted EPS measure, 'Operating Earnings' beginning with its fourth quarter 2012 earnings release.
International Paper posted net sales of $26 billion for 2011.
IP shares, which have been trading in the 52-week range of $27.05 to $38.42, added 1.47 percent to trade at $37.93 on Thursday.