International Paper Co. said Friday it completed its acquisition of a 75 percent stake in Andhra Pradesh Paper Mills Ltd. of India for a total of about $388 million in cash.
The Memphis, Tenn., paper and packaging company purchased about 53.5 percent of Andhra's outstanding shares from L.N. Bangur and related family members and affiliates for about $226 million. It also made a $57 million cash payment to the sellers in exchange for a pledge that they would not compete with their old business.
International Paper also bought an additional 21.5 percent of Andhra shares for about $105 million in a public tender offer completed earlier this month.
Andhra, an integrated paper maker, operates two mills in India, makes paper and pulp products and employs about 2,500 people. International Paper has about 59,500 people in more than 24 countries, and company officials said in a statement the deal leaves it well positioned to serve the rapidly growing Indian market.
International Paper shares finished at $25.71 on Thursday.