About 3.8 million acres across the southern US and 440,000 acres in Michigan will be sold to an investor group led by Resource Management Service for US$5bn, while 900,000 acres in Louisiana, Texas and Arkansas is to be bought by another group led by TimberStar for US$1.1bn.
The sales, coupled with other transactions to conservation groups announced recently, will see International Paper dispense with about 85% of its US forest holdings.
The agreement with Resource Management Service includes a 10-year wood supply contract for International Paper’s wood product facilities in Michigan.
The deal with TimberStar features a 30-year wood supply agreement for International Paper’s timber products plants.
