International Paper Company (NYSE:IP) announced a plan to pursue a spin-off of the Company's Printing Papers segment (Printing papers segment of International Paper Company) into a standalone, publicly traded company ("SpinCo"). The transaction will result in two streamlined, leading companies well positioned for long-term success. Upon completion of the transaction, International Paper and SpinCo will each be well positioned to create long-term value.

The Company expects the separation to be tax-free for the Company's shareowners for U.S. federal income tax purposes and plans to complete the spin-off late in the third quarter of 2021. "We remain committed to producing sustainable products that people depend on every day and accelerating value creation for International Paper and our shareowners. This transaction represents a logical next step as we continue to build a better IP," said Mark Sutton, Chairman and Chief Executive Officer.

"International Paper will be a more-focused corrugated packaging and absorbent cellulose fibers company serving attractive segments, well-positioned to increase earnings and cash generation. I am confident that our plans will create value for our shareowners, employees, customers and other stakeholders". J.P. Morgan Securities LLC and Perella Weinberg Partners LP are serving as financial advisors for the transaction.

Debevoise & Plimpton LLP is serving as legal advisor.