International Paper Company (NYSE: IP) and Temple-Inland Inc. (NYSE: TIN) today announced that they have reached an agreement with the Antitrust Division of the U.S. Department of Justice ("DOJ") with respect to International Paper's acquisition of Temple-Inland. As part of the agreement, the DOJ has entered into a consent decree with International Paper and Temple-Inland that allows the combination to proceed. The companies expect to complete the transaction promptly.
Under the terms of the consent decree filed in federal court in the District of Columbia, the combined company will undertake the post close divesture of 970,000 tons of containerboard mill capacity within four months, with the possibility of two 30-day extensions. The company agreed to divest Temple-Inland's facilities in Ontario,California and New Johnsonville, Tennessee, and International Paper's facility in Hueneme, California. International Paper reaffirms that it expects to achieve at least $300 million of synergies within twenty-four months of closing.
International Paper Chairman and CEO John Faraci said, "We are pleased to have reached an agreement with the DOJ that addresses their concerns and preserves the value in the combination of these two fine companies. As we take the final steps to closing, we look forward to a smooth integration and to realizing the substantial benefits this transaction provides our customers, employees and shareholders."
The company will hold a webcast to go over the announcement in more detail starting at 1:30 pm. EST, 12:30 pm. CST. All interested parties are invited to listen to the webcast live via the company's Internet site at http://www.internationalpaper.com by clicking on the Investors tab and going to the Presentations page. Parties who wish to participate in the webcast via teleconference may dial +1 (706) 679-8242 or, within the U.S. only, (877) 316-2541 and ask to be connected to the International Paper's Settlement Agreement Call. The conference ID number is 50817955. Participants should call in no later than 1:15 pm EST 12:15 pm. CST.
An audio-only replay will be available for four weeks following the call. To access the replay, dial +1 (855) 859-2056 or (404) 537-3406 and when prompted for the conference ID, enter 50817955.