MEMPHIS, TN, May 2, 2016-

International Paper (IP) announced that it has entered into a definitive agreement to purchase Weyerhaeuser's pulp business.  Under terms of the agreement, IP will acquire five pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp for a number of consumer applications including diapers, other hygiene products, tissue, and textiles.

Because the transaction is a purchase of assets, International Paper expects to realize a tax benefit with an estimated net present value of approximately $300 million.  Including this benefit, the net price is approximately $1.9 billion.  International Paper forecasts annual synergies of approximately $175 million by the end of 2018, which will require the need for one-time costs of approximately $85 million.

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