MEMPHIS, TN (From news reports) -- International Paper Company announced that it entered into an agreement to sell its 50% interest in Ilim SA to its joint venture partners for $484M. The company noted that the sale is subject to regulatory approvals in Russia.
The transaction price indicates ~$3.5B in total enterprise value for Ilim based on a ~3.1X EBITDA multiple on 2022 full-year results.
International Paper also received an indication of interest from its JV partners to purchase all of the company's shares in JSC Ilim Group for $24M on terms and conditions to be agreed. The plan is to pursue an agreement to sell the JSC Ilim Group shares, and to divest other non-material residual interests associated with Ilim to the other JV partners.
Ilim Group operates major Russian pulp & paper mills in the Arkhangelsk, and Irkutsk Regions, having branches in Koryazhma, Bratsk and Ust-Ilimsk, as well as forestry branches, procuring raw materials to the production facilities, and two corrugated cardboard plants in the Leningrad and Moscow Regions.