International Paper has completed its acquisition of Weyerhaeuser’s pulp business for approximately $2.2 billion in cash, subject to post-closing adjustments. Because the transaction is a purchase of assets, International Paper expects to realize a tax benefit with an estimated net present value of approximately $300 million. International Paper expects annual synergies of approximately $175 million by the end of 2018, which will require the need for one-time costs of approximately $85 million.

“This transaction positions International Paper as the premier global supplier of fluff pulp and enhances our ability to generate additional cash flow,” says International Paper chairman and CEO Mark Sutton. “I want to personally welcome the talented employees of Weyerhaeuser to the International Paper family as we look forward to serving our customers around the world.”

In this transaction, International Paper acquired five pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp products for a number of consumer applications including diapers, other hygiene products, tissue, and textiles. The acquired business has approximately 1900 employees around the world, with manufacturing operations based in Canada, Poland and the U.S. (located in Mississippi, Georgia and North Carolina).

The combined businesses will be called Global Cellulose Fibers, led by senior vice president Jean-Michel Ribieras, and reported as a separate business segment beginning with the company’s release of earnings for the fourth quarter of 2016.