US-based paper and packaging company International Paper (IP) has completed the acquisition of a 75% stake in India-based Andhra Pradesh Paper Mills (APPM) for about $388m.
IP purchased about 53.5% of the company’s outstanding shares for about $226m in March 2011 and also made a $57m cash payment to the sellers in exchange for a pledge that they would not rival with their old business.
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The company also bought an additional 21.5% of APPM shares for about $105m in a public tender offer completed earlier in October.
According to IP, the transaction will position the company as the first global paper and packaging company with a significant position in India’s fast growing economy, once completed.
IP chairman and CEO John Faraci said the acquisition enables the company to grow with the Indian paper and packaging markets.
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APPM operates two mills with a combined annual capacity of 250,000t of uncoated freesheet paper.
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