International Paper (NYSE: IP) has acquired the remaining 25% of shares of Orsa International Paper Embalagens S.A. from its joint venture partner, Brazilian pulp and packaging producer Jari Celulose, Embalagens e Papel S.A. The shares were purchased at the original transaction price per share for R$318MM (~$135MM USD). With this transaction, International Paper takes full ownership of three containerboard mills and four box plants, which made up Jari's former corrugated packaging assets. "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," said John Faraci, Chairman and Chief Executive Officer.
International Paper has been in the printing papers business in Brazil for over 50 years with a production system today 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. The brands that are produced at these mills include Chamex, Chamequinho and Chambril.