International Paper said Tuesday it will sell its Jacksonville-based Arizona Chemical business to Rhone Capital III L.P. for $485 million, as the paper maker focuses on its uncoated paper and packaging businesses.
The deal, expected to close in the first quarter, is part of a $985 million sale of International Paper's beverage packaging and chemical business. International is selling its beverage packaging business for about $500 million to Carter Holt Harvey Ltd.
International Paper Chief Executive Officer John Faraci has shed assets, including most of the company's U.S. timberlands, to focus on production of white paper and industrial packaging. Since launching the plan in July 2005, the company has earned about $11 billion from asset sales.
Arizona Chemical, which had about $690 million in revenue last year, produces high-value pine chemicals for the adhesives, inks and coatings and oleochemicals markets. The company employs nearly 1,500 people, including about 125 in Jacksonville, with manufacturing facilities in 11 cities in the United States and Europe.
International Paper spokeswoman Amy Sawyer declined to speculate on what effect the sale might have on Arizona's labor force, or whether the company would remain headquartered in Jacksonville.
"Ultimately," Sawyer said, "Rhone will be making the decisions about how to manage the business going forward."
Material from Bloomberg News was used in this article.
http://www.redorbit.com/news/science/774101/arizona_chemical_sold_to_rhone_capital_as_part_of_international/index.html?source=r_science
