International Paper

(IP) - Get Report

agreed to sell its kraft papers business, a unit that had about $220 million in sales last year, to Stone Arcade Acquisition.

The deal is valued at around $155 million, subject to adjustments, and two payments of up to $60 million depending on the performance of the business. The kraft papers business includes a paper mill in Roanoke Rapids, N.C., and a bag plant in Fordyce, Ark.

International Paper said the transaction is part of its plan to sell certain operations and focus on uncoated papers and packaging. Proceeds from divestitures announced to date, including kraft papers, total about $9.3 billion.

The sale is expected to close in the third quarter. Shares of International Paper were adding 26 cents, or 0.8%, to $32.02.