The world’s largest paper producer will sell its stake in the Ilim Group to Russian partners for $484 million

The American company International Paper announced that it will sell its half to Ilim SA, which owns the largest producer of pulp and paper products in the Russian market – the Ilim group. The buyer will be Russian partners for $484 million. This is stated in a message on site companies.

The deal is subject to regulatory approval. In 2007, International Paper bought a stake in Ilim SA for $650 million. The Russian business brought International Paper about $250 million in profit for the three quarters of 2022, as well as $204 million in dividends. At the end of 2022, the value of the entire Ilim company was estimated at $3.5 billion.

International Paper announced its intention to sell its stake in Ilim back in the spring of last year. 50% of Ilim is controlled by Zakhar Smushkin, as well as brothers Boris and Mikhail Zingarevich. Ilim owns 96.37% in the Ilim group, another 2.39% belongs to International Paper. The company can also sell these 2.39% to partners. As follows from the press release, they have already expressed interest in buying it. The estimated amount of the transaction is $24 million. The terms of the sale are being discussed.

The Ilim company was founded in 1992. Then it was called “Ilim Pulp Enterprise”. Among the co-founders of Finzell, which was the founder of Ilim, was Dmitry Medvedev. He owned 50% of Finzell, as well as 20% directly in Ilim Pulp Enterprise. Most of Ilim’s products (70%) are exported. The company’s share in the market pulp market in Russia is 75%, in the cardboard and paper market – 20% and 10%. Its central office is located in St. Petersburg. The company’s factories are located in the Arkhangelsk, Irkutsk, Leningrad and Moscow regions.

In May about leaving Russia informed SvetoCopy paper is manufactured by Sylvamo Corporation. Company sold Russian assets to local management.

Anastasia Larina