NEW YORK (CNNMoney.com) - International Paper said Monday it has inked a deal to sell its coated paper division for $1.4 billion.

The world's largest forest products company plans to sell four paper mills to CMP Holdings, with the transaction expecting to close in mid-summer 2006. The deal includes two mills in Maine, one in Michigan and one in Minnesota.

The purchase price is $1.37 billion in cash and a $30 million stake in the parent company of CMP Holdings.

"The coated papers sale agreement is another important step in transforming International Paper to narrow our focus, strengthen our returns and improve value for our shareowners," said John Faraci, the company's CEO, in a statement.

IP (up $0.21 to $34.02, Research)'s other businesses include producing uncoated paper, plywood, and pulp, and selling specialty chemicals.

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