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International Paper prunes
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February 15, 2001: 3:00 p.m. ET
IP to sell 265,000 acres of Washington state timber for more than $500 million
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NEW YORK (CNNfn) - International Paper agreed to sell about 265,000 acres of forest in Washington state for more than $500 million to Ranier Timber Co., as part of the company's plan to divest $5 billion in non-essential assets after its merger with Champion International.
International Paper said it will use the proceeds of the sale to pay down debt.
 With the transaction, the Purchase, N.Y.-based company will have divested about $1.7 billion in assets.
"We will continue to move swiftly on three fronts as we proceed with our divestiture program – building stronger businesses in paper packaging and forest products; focusing our portfolio on these core businesses; and exercising both operating and financial discipline," said Wes Smith, IP executive vice president, in a statement.
IP bought Champion for $7.3 billion in May 2000. Ranier Timber Co. is newly formed company managed by Portland, Ore.-based The Campbell Group.
Shares of International Paper (IP: Research, Estimates) rose $1.89 to $37.99 in afternoon trading on the New York Stock Exchange. 
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