International Paper to Buy Temple-Inland for $4.3 Billion

Paper and packaging manufacturer International Paper said it has reached a $4.3 billion takeover deal with Temple-Inland, three months after taking its bid hostile.

IP said it will acquire Temple-Inland for $32 per share in cash, plus assume the Texas firm's debt of $600 million.

The total transaction value is about $4.3 billion, Memphis, Tenn.-based International Paper said in a statement.

The deal "brings together two strong North American corrugated packaging businesses to create an even stronger company," International Paper said.

Both companies' boards have approved the transaction, which is expected to close in the first quarter of 2012.

"The strategic benefits of this combination are clear and we are pleased to be able to move forward on terms that are financially attractive for both sets of shareholders," said John Faraci, International Paper chairman and chief executive.

The agreed acquisition came after International Paper launched a hostile offer of $30.60 in cash per share, in a deal valued at $3.3 billion.

Copyright Agence France-Presse, 2011