International Paper Completes Sale of Kraft Papers Business to Stone Arcade Acquisition Corp. for Approximately $155 Million

The kraft papers business, which will now be known as KapStone Paper and Packaging Corporation, produces approximately 400,000 tons of kraft papers, used in a variety of end-use products including approximately 9 million Ride Rite dunnage bags.

06/01/07 International Paper closed on the sale of its kraft papers business to Stone Arcade Acquisition Corp. (OTC Bulletin Board: SCDE) for approximately $155 million and two payments totaling up to $60 million, payable five years from the close of the transaction, contingent upon business performance. The kraft papers business includes the Roanoke Rapids, N.C., mill and the Fordyce, Ark., Ride Rite dunnage bag plant.

The kraft papers business, which will now be known as KapStone Paper and Packaging Corporation, produces approximately 400,000 tons of kraft papers, used in a variety of end-use products including approximately 9 million Ride Rite dunnage bags. The business employs approximately 700 people.