USA – Klabin S.A. has entered into an agreement to acquire International Paper’s Brazilian corrugated packaging business for R$330 million (US$64m), subject to certain closing conditions and regulatory approvals.

International Paper’s Brazilian business includes three containerboard mills and four box plants. The business has an annual production capacity of corrugated boxes of 305, 000 tons and a 6.6% market share as of 2018, according to ABPO.

If the deal receives all necessary approvals, Klabin will pay R$280 million (US$54m) at closing of the transaction and R$50 million (US$10m) one year thereafter, subject to certain adjustments.

Klabin said that the transaction will be financed through its own resources and it expects no material impact on the company’s financial leverage. The transaction is expected to close in the second half of 2020.

This agreement follows International Paper’s previously announced strategic review of the Brazil packaging business. The company said that will continue to run its Papers and Forestry businesses in Brazil. 

Headquartered in Memphis, USA, International Paper operates several manufacturing facilities in North America, Latin America, Europe, North Africa and Russia and serve more than 25,000 customers in 150 countries.

The company recently named Sophie Beckham as its first-ever chief sustainability officer as it prepares to advance its contributions to the circular economy following a commitment to advance circular solutions and create positive social and environmental impact.

By 2030, International Paper committed to achieving four goal including; improving its climate impact and advancing water stewardship, accelerating the transition to a low-carbon economy through innovative fiber-based products, leading forest stewardship efforts globally and promoting its employee well-being.

Each goal includes one to three specific, measurable targets, enabling the company to track its progress throughout the decade.

The company said that the targets include commitments to reduce greenhouse gas emissions by 35% from 2017 levels, to reduce water usage by 25% and to create innovative products that are 100 percent reusable, recyclable or compostable.

“Our Vision 2030 goals are designed to benefit our employees and communities, enable us to meet our customers’ demands for more sustainable products and further improve our environmental footprint,” Sophie said.