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Weyerhaeuser Completes Sale To International Paper

Timber and wood products producer said Monday it completed the sale of its containerboard packaging and recycling business to International Paper for $6 billion in cash.

NEW YORK (AP) -- Timber and wood products producer Weyerhaeuser Co. said Monday it completed the sale of its containerboard packaging and recycling business to International Paper for $6 billion in cash.

Weyerhaeuser said it plans to use a substantial portion of the money to pay down debt.

International Paper said it would realize a $1.4 billion tax benefit.

International Paper also expects to improve profit by $400 million annually from the acquisition because of cost savings, optimizing product mix and increased efficiency.

The company expects to see at least 40 percent of the improvement within a year.

The transaction includes nine containerboard mills, 72 packaging locations, 10 specialty-packaging plants, four kraft bag and sack locations and 19 recycling facilities.

About 14,000 employees will transfer from Weyerhaeuser to IP.

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