International Paper Reaches Agreement to Sell Ownership Interest in Ilim Joint Venture

International Paper (or the “Company”) announced that it has entered into an agreement to sell its 50% interest in Ilim SA, the holding company for its Ilim joint venture (“JV”), to its JV partners for $484MM (USD) equity value. The sale is subject to regulatory approvals in Russia.

This transaction indicates ~$3.5 billion in total enterprise value (“TEV”) for Ilim based on a ~3.1X EBITDA multiple on 2022 full-year results*.

The Company also received an indication of interest from its JV partners to purchase all of the Company’s shares (constituting a 2.39% stake) in JSC Ilim Group for $24MM (USD) on terms and conditions to be agreed. The Company intends to pursue an agreement to sell the JSC Ilim Group shares, and to divest other non-material residual interests associated with Ilim, to its JV partners.

Additional information will be communicated when available.

*2022 full-year unaudited results are $1.11B EBITDA; As of 12/31/22, the unaudited TEV includes $2.45B net debt

About International Paper

International Paper (NYSE: IP) is a leading global supplier of renewable fiber-based products. We produce corrugated packaging products that protect and promote goods, and enable worldwide commerce, and pulp for diapers, tissue and other personal care products that promote health and wellness. Headquartered in Memphis, Tenn., we employ approximately 38,000 colleagues globally. We serve customers worldwide, with manufacturing operations in North America, Latin America, North Africa and Europe. Net sales for 2021 were $19.4 billion. Additional information can be found by visiting InternationalPaper.com.

Source: International Paper Company