International Paper and Premdor Revise Terms of Masonite Sale
Press release from the issuing company
STAMFORD, Conn., July 5 -- International Paper announced today that it has signed an amendment to the purchase agreement for the sale of Masonite to Premdor Inc. The sale is subject to final approval by the Department of Justice and is expected to close on August 31, 2001. Under the terms of the sale agreement, Premdor will purchase the Masonite business for $300 million in cash and $200 million in notes, subject to certain adjustments.
International Paper and Premdor have agreed to enter into a Consent Decree with the Department of Justice to clear the way for the sale of Masonite. The proposed Consent Decree will require a post-closing divestiture by Premdor of Masonite's mill in Towanda, Pa.
"We will continue to work with Premdor to seek final regulatory approval and ensure a smooth transition for employees and customers,'' said Bill Hoel, International Paper's vice president for Panels and Engineered Wood Products businesses and Masonite president. "We are hopeful that the final approval of the Consent Decree will occur prior to the end of August.''
International Paper first announced its plans to sell Masonite to Premdor in October of 2000 as part of the company's program to divest assets that no longer fit the company's long-term strategy in the wake of acquiring Champion International last year.
Masonite has been a company of International Paper since 1988 and celebrated its 75th anniversary as a leader in the building products industry in 2000. The company designs and manufactures wood composite materials for residential and commercial construction and industrial applications.
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