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International Paper (IP) to Sell Turkish Corrugated Packaging
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International Paper (IP - Free Report) has entered into an agreement to divest its 90.38% shareholding interest in Olmuksan International Paper to Mondi Group for roughly €66 million ($81 million). Per the agreement, the company will sell its corrugated packaging facilities in Turkey.
The Olmuksan corrugated packaging business generates annual revenues of approximately €150 million ($185 million). Olmuksan International Paper operates three corrugated facilities in Turkey and is focused on serving customers in the food, agriculture, heavy-duty and industrial sectors.The deal is expected to close in the first half of the current year.
Last October, the company announced its decision to sell the corrugated packaging business in Turkey due to bleak economic conditions in the country. The move supports International Paper’s strategy to serve markets from an advantageous position. The company is focused on expanding corrugated packaging business in the EMEA region over the long haul.
Last month, the company announced its plan to spin-off the Printing Papers segment into a standalone, publicly-traded company (SpinCo). This move will enable International Paper to focus on its Industrial Packaging segment, and capitalize on the growing demand for corrugated packaging, cut costs and improve earnings.
The company continuously evaluates its operations for improvement opportunities by focusing on the core businesses, realigning capacity to operate fewer facilities, closing high cost facilities, and trimming costs. In sync with this, International Paper has strategically offloaded businesses in China to focus more on its U.S. operations. It believes that it could cater to the Chinese and Asian markets more effectively by supplying globally competitive products primarily through the company’s Ilim joint venture in Russia and through exports from the United States and other parts of the world.
International Paper has also completed the divesture of its consumer packaging business in North America to Graphic Packaging Holding Company (GPK - Free Report) . This has helped the company maximize the value of North American Consumer Packaging business by combining it with Graphic Packaging, while also focusing on its core businesses, and strengthen the balance sheet.
International Paper continues to witness surging demand for corrugated packaging. With rising e-commerce activities over the past few years, packaging has gained importance as it has to maintain the integrity and durability of a product to withstand the complex product-delivery process. On top of that, the pandemic has fueled e-commerce growth as online demand for grocery, beverage and pharmaceuticals delivery services has shot up.
Price Performance
International Paper’s shares have gained 11.5% over the past year compared with the industry’s growth of 8.9%.
Zacks Rank & Other Stocks to Consider
International Paper currently carries a Zacks Rank #2 (Buy).
Fortescue has a projected earnings growth rate of 53.6% for fiscal 2021. The company’s shares have soared 153% in a year’s time.
BHP has an expected earnings growth rate of 43.3% for fiscal 2021. The company’s shares have gained around 23.6% in the past year.
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International Paper (IP) to Sell Turkish Corrugated Packaging
International Paper (IP - Free Report) has entered into an agreement to divest its 90.38% shareholding interest in Olmuksan International Paper to Mondi Group for roughly €66 million ($81 million). Per the agreement, the company will sell its corrugated packaging facilities in Turkey.
The Olmuksan corrugated packaging business generates annual revenues of approximately €150 million ($185 million). Olmuksan International Paper operates three corrugated facilities in Turkey and is focused on serving customers in the food, agriculture, heavy-duty and industrial sectors.The deal is expected to close in the first half of the current year.
Last October, the company announced its decision to sell the corrugated packaging business in Turkey due to bleak economic conditions in the country. The move supports International Paper’s strategy to serve markets from an advantageous position. The company is focused on expanding corrugated packaging business in the EMEA region over the long haul.
Last month, the company announced its plan to spin-off the Printing Papers segment into a standalone, publicly-traded company (SpinCo). This move will enable International Paper to focus on its Industrial Packaging segment, and capitalize on the growing demand for corrugated packaging, cut costs and improve earnings.
The company continuously evaluates its operations for improvement opportunities by focusing on the core businesses, realigning capacity to operate fewer facilities, closing high cost facilities, and trimming costs. In sync with this, International Paper has strategically offloaded businesses in China to focus more on its U.S. operations. It believes that it could cater to the Chinese and Asian markets more effectively by supplying globally competitive products primarily through the company’s Ilim joint venture in Russia and through exports from the United States and other parts of the world.
International Paper has also completed the divesture of its consumer packaging business in North America to Graphic Packaging Holding Company (GPK - Free Report) . This has helped the company maximize the value of North American Consumer Packaging business by combining it with Graphic Packaging, while also focusing on its core businesses, and strengthen the balance sheet.
International Paper continues to witness surging demand for corrugated packaging. With rising e-commerce activities over the past few years, packaging has gained importance as it has to maintain the integrity and durability of a product to withstand the complex product-delivery process. On top of that, the pandemic has fueled e-commerce growth as online demand for grocery, beverage and pharmaceuticals delivery services has shot up.
Price Performance
International Paper’s shares have gained 11.5% over the past year compared with the industry’s growth of 8.9%.
Zacks Rank & Other Stocks to Consider
International Paper currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) and BHP Group (BHP - Free Report) , each currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortescue has a projected earnings growth rate of 53.6% for fiscal 2021. The company’s shares have soared 153% in a year’s time.
BHP has an expected earnings growth rate of 43.3% for fiscal 2021. The company’s shares have gained around 23.6% in the past year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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