International Paper (NYSE: IP) has entered an agreement to purchase Weyerhaeuser‘s pulp business for $2.2bn.

Under the deal, NYSE: IP will buy five pulp mills and two converting facilities that produce fluff, softwood, and specialty pulps for a number of consumer applications, such as nappies, hygiene products, tissues and textiles.

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The deal is expected to be completed in late 2016 under closing conditions, including the receipt of regulatory approval.

The merged entity is expected to provide the company with flexibility to manage a wide portfolio of products.

"This transaction will position us as the premier global supplier of fluff pulp and will enhance our ability to generate additional free cash flow."

International Paper chairman and CEO Mark Sutton said: "Weyerhaeuser’s pulp business has an outstanding customer base served from low-cost, well-run assets that complement our existing system and offers significant synergy opportunities.

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"This transaction will position us as the premier global supplier of fluff pulp and will enhance our ability to generate additional free cash flow.

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"We look forward to working with the talented employees of Weyerhaeuser as we integrate our businesses and create an even stronger company."

NYSE: IP has manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.

With nearly 55,000 employees, the company produces industrial and consumer packaging, uncoated papers and pulp.

Weyerhaeuser’s pulp business has nearly 1,900 employees throughout the US, Canada and Poland.