IP Selling Coated, SC Paper Business

STAMFORD, CT—International Paper has agreed to sell its coated and supercalendered papers business to CMP Holdings for about $1.4 billion. The business includes two mills in Maine and one each in Michigan and Minnesota, which combined for $1.6 billion in sales in 2005.

The total of the sale is subject to certain post-closing adjustments and is expected to be completed this summer. The purchase price consists of roughly $1.37 billion in cash and $30 million in the form of a 10 percent stake in CMP Investments, parent company of CMP Holdings.