IP breaks off merger talks with Panolam. (Panel Extra News).

International Paper of Stamford, CT, announced Feb. 7 that it had ended discussions to sell its Decorative Products Division to Panolam Industries of Shelton, CT. On day later, IP announced that it had signed a letter of intent to sell its three oriented strandboard facilities to Nexfor Inc. of Toronto, ONT.

IP and Panolam had signed a letter of intent for the sale last July. The letter expired in September, but the companies continued discussions until recently. The Decorative Products Division produces high- and low-pressure laminates, particleboard panels and foam-core panels. It includes the brand names Nevamar and Micarta.

The OSB facilities that IP plans to sell are located in Jefferson, TX, Nacogdoches, TX, and Cordele, GA. They employ a total of 456 people.

Completion of the deal with Nexfor is subject to the negotiation of a purchase and sale agreement and meeting closing conditions, including regulatory approval. Bill Hoel, vice president of IP's Panels & Engineered Wood business, said, "The decision (to sell the plants) is part of the company's divestiture program and strategy to focus on core businesses."

IP has previously divested a hydroelectric facility, its flexible packaging business and its Masonite business.