Global paper and packaging firm International Paper (IP) has completed the R$318m ($135m) acquisition of the remaining 25% of shares of Orsa International Paper Embalagens from its Brazilian joint venture partner Jari Celulose, Embalagens e Papel.
With the transaction, the paper manufacturer has taken complete ownership of Jari Celulose's corrugated packaging assets, including three containerboard mills and four box plants.
IP chairman and CEO John Faraci said: "This investment is in line with our strategy to selectively grow our industrial packaging business globally in attractive markets and put capital to work that deliver returns above our cost of capital."
IP completed the approximately $470m transaction with Jari Celulose on 14 January to form the joint venture company Orsa International Paper. During this, IP showed an interest to hold a 75% stake in the joint venture to enhance its global packaging business.
IP offers uncoated papers and industrial and consumer packaging, and operates manufacturing facilities in North America, Europe, Latin America, Russia, Asia and North Africa.
The company, which has been in the printing papers business in Brazil for over 50 years, has a production system comprised of two pulp and paper mills in Mogi Guacu and Luiz Antonio, in Sao Paulo State, and a paper mill in Tres Lagoas, Mato Grosso do Sul State.
Image: International Paper Company on the Sampit River in Georgetown, South Carolina. Photo: courtesy of Pollinator.