International Paper is buying Weyerhaeuser's containerboard, packaging and recycling business for $6bn (£3bn).
The deal includes nine containerboard mills, 72 packaging locations, 10 specialty packaging plants, four kraft bag and sack locations and 19 recycling facilities. It also involves approximately 14,300 employees.
International Paper's chairman and chief executive, John Faraci, said the acquisition fitted well with the company's strategy to improve earnings, cashflow and returns.
International Paper will finance the deal through debt facilities and has financial commitments from several banks.
The deal is expected to be completed in the third quarter of 2008, but is subject to conditions, including regulatory review.
Source: packagingnews
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