Moody's: International Paper's Bid to Acquire Smurfit Kappa Is Credit Negative
Moody's says International Paper Company's (IP, Baa2 stable) unsolicited offer to buy Smurfit Kappa Group plc (SKG, Ba1 stable) for Euro 8.6 billion ($10.6 billion) using 60% cash and 40% equity is credit negative. The acquisition is expected to cause leverage (adjusted debt/EBITDA) to increase ...International Paper is a producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa, India and Russia. The company's segments are: Industrial Packaging, which manufactures containerboard, such as linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; Global Cellulose Fibers, which produces fluff pulp for making absorbent hygiene products like baby diapers, feminine care, adult incontinence and other non-woven products; and Printing Papers, which produces printing and writing papers, such as uncoated papers for use in copiers, desktop and laser printers and digital imaging.
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