International Paper (IP) and corrugated packaging producer in Brazil Jari Celulose, Embalagens e Papel, a Grupo Orsa company, have sealed the previously announced deal to form a new joint venture (JV), in which IP will invest about $470m.

IP will hold a 75% stake in the JV Orsa International Paper Embalagens, which includes three containerboard mills and four box plants that make up Jari's former industrial packaging assets.

IP chairman and chief executive officer John Faraci said the company believes that the partnership will serve as a platform to enter the corrugated packaging business in Brazil.

"This investment fits our strategy to grow our packaging business globally and allocate capital to opportunities that deliver returns well above our cost of capital," Faraci said.

The transaction was originally announced in October 2012.

IP, which has manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa, has businesses including uncoated papers and industrial and consumer packaging.