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.
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.
APPM operates two mills with a combined annual capacity of 250,000t of uncoated freesheet paper.