US converter sells Brazilian interest

Riverwood International Corp., Atlanta, GA has announced it has completed the sale, of just under 50% interest in Riverwood's Brazilian operation, Igaras Papeis e Embalagens SA, to a subsidiary of Cia. Suzano de Papel e Celulose for approximately $100 million.

Riverwood and Suzano will jointly oversee Igaras' business, including the containerboard business, the timberland assets and the packaging business. The two companies have decided to maintain the coated board packaging business within the Igaras structure, instead of the previously announced 75/25 separate joint venture. They have also agreed to explore additional joint venture packaging investments in the balance of South America.

"We're very pleased to begin this long-term business venture with Suzano, a recognized leader in the Brazilian paper industry, and to enhance our participation in this region," Thomas H. Johnson, pres. and CEO, Riverwood, said. "We feel this new joint venture will position us well to capitalize upon the growing demand for packaging and paperboard throughout South America."

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