Stora Enso to Buy IP’s Brazilian Coated Papers Business

International Paper has agreed to sell its Brazilian coated papers business to Stora Enso Oyj for about $415 million. The business includes a coated paper mill and lumber mill in Arapoti, Parana State, Brazil, as well as about 124,000 acres of forestland in Parana.

The transaction is expected to close in the third quarter of 2006. The move is part of International Paper’s previously announced transformation plan to focus on uncoated papers and industrial and consumer packaging globally. Including this deal, expected proceeds from transformation-related divestitures announced to date are approximately $9.7 billion.