VALDOSTA — International Paper Co. has announced the sale of Arizona Chemical businesses to a private equity firm, Rhone Capital III L.P. Valdosta is home to an Arizona Chemical plant that employs more than 70 people and manufactures resins and ink solutions from rosin refined at sister plants.

According to a company news release, International Paper will acquire a minority interest of approximately 10 percent in the acquisition vehicle to be formed by Rhone Capital. The transaction is expected to close in the first quarter of 2007, and all employees have been notified.

The $485 million transaction is part of a transformation plan that will make International Paper a more focused, more profitable company. The company also announced the sale of its beverage packaging business to Carter Holt Harvey, Ltd. for approximately $500 million. Both transactions are subject to certain adjustments and conditions at closing, including receipt of regulatory approvals.

Proceeds from transformation divestitures, including these sales, total approximately $11 million to date.

“Exiting these businesses is the right step for International Paper and our shareowners, but I don’t want to lose sight of the contribution the businesses and their employees have made to this company,” said John Faraci, International Paper chairman and chief executive. “They have a legacy of strong leadership, talent and commitment, and I know they’ll continue to succeed.”

Rhone Capital specializes in mid-market leveraged buyouts, recapitalizations and partnerships with particular focus on European and Trans-Atlantic investments. The acquisition of Arizona Chemical will be an investment of Rhone’s third private equity fund.

Amy Sawyer of International Paper told The News Herald in Panama City that while she could not speculate on Rhone Capital’s plans for the facilities or Arizona Chemical employees, it is her understanding that Rhone is buying Arizona Chemical as an ongoing business and that it intended to run the company in its current manner.