International Paper has announced that it has reached an agreement to sell its Temple-Inland Building Products division to Georgia-Pacific LLC for $750 million in cash, subject to certain pre- and post-closing adjustments.

According to a news release from International Paper:

The assets to be sold include 16 manufacturing facilities — five solid wood mills, four particleboard plants, two medium-density fiberboard plants, one fiberboard plant and four gypsum wallboard plants.

Carolyn Elmore, with International Paper in Texas, said the deal affects the Rome sawmill, which employs 161 people. The Rome mill  produces “dimensional lumber,” anything from 2x4s to 2x10s, and is capable of producing 190 million board feet of lumber annually.

The Rome linerboard mill, which makes paper boxes, is not affected by the sale, Elmore said.

While not core to International Paper’s strategy, Temple-Inland Building Products is an industry leader,” said John Faraci, chairman and chief executive officer. “I am pleased to have reached a deal that recognizes the strength of the business and provides excellent value for IP shareowners.”

Temple-Inland Building Products facilities are located across eight states, primarily in the southeastern and eastern portions of the United States, with access to five of the top 12 housing markets.

The transaction is expected to be completed in the first quarter of 2013, subject to satisfaction of various closing conditions, including obtaining required governmental approvals. IP intends to use the proceeds from the sale to reduce its debt.