International Paper reaches agreement to sell ownership interest in Ilim joint venture

International Paper announced that it has entered into an agreement to sell its 50% interest in Ilim SA, the holding company for its Ilim joint venture (JV), to its JV partners for $484 million equity value. The sale is subject to regulatory approvals in Russia.

International Paper does not disclose its JV partners. However, Interfax reports that the remaining 50% of Ilim SA is controlled by Zakhar Smushkin and brothers Boris and Mikhail Zingarevich. International Paper entered the capital of Ilim SA in 2007, having paid $650 million.

This transaction indicates ~$3.5 billion in total enterprise value (TEV) for Ilim based on a ~3.1X EBITDA multiple on 2022 full-year results.

The Company also received an indication of interest from its JV partners to purchase all of the Company’s shares (constituting a 2.39% stake) in JSC Ilim Group for $24 million on terms and conditions to be agreed. The Company intends to pursue an agreement to sell the JSC Ilim Group shares, and to divest other non-material residual interests associated with Ilim, to its JV partners.