MEMPHIS, Tenn. -- International Paper on Monday announced that it has entered into a definitive agreement to sell its corrugated packaging business in China and Southeast Asia to Xiamen Bridge Hexing Equity Investment Partnership Enterprise. International Paper's corrugated packaging business in Asia has 18 plants and a workforce of approximately 3,000 employees.

Under terms of the transaction, International Paper will receive a total of approximately RMB 1 billion (approximately US$150 million at current exchange rate), subject to post-closing adjustments and other payments, including the buyer's assumption of the liability for loans of approximately US$50 million to be paid to International Paper within six months of closing of the sale.

The transaction is expected to be completed in the next few months, subject to satisfaction of closing conditions, including obtaining required governmental approvals.