US packaging firm International Paper has entered into an agreement to sell its Brazilian corrugated packaging business to Klabin S.A. for R$330 million ($64.4 million).
The deal, which forms part of International Paper’s strategic review of its Brazil packaging business, includes three containerboard mills and four box plants.
Under its corrugated packaging unit, International Paper’s packaging can be used throughout the supply chain from product packaging to the point of sale.
In terms of the food and beverage sector, the firm provides a variety of models for fruit and vegetable packaging as well as frozen and refrigerated products.
Headquartered in Sao Paulo, Klabin manufactures packaging paper and board and corrugated boxes to a variety of business sectors.
Under the terms of the deal, R$280 million ($54.7 million) will be paid at the closing of the deal, while R$50 million ($9.7 million) will be paid one year after, subject to certain adjustments.
The deal is expected to close in the second half of 2020, subject to certain closing conditions.
Following the transaction, International Paper will continue to run its paper and forestry business in Brazil.
In 2017, Finnish packager Huhtamaki acquired International Paper’s foodservice packaging operations in China for €15 million including units that specialised in paper cups for hot and cold beverages, food containers as well as snack food and ice-cream containers.
Earlier this year, the company named Sophie Beckham as its first-ever chief sustainability officer, as it aims to accelerate its actions towards a circular economy.
© FoodBev Media Ltd 2019