The business includes Sylvamo’s uncoated free-sheet paper mills in Saillat, France, and Nymolla, Sweden, along with its forestry and supporting operations, the company said.

Following the consultation processes, the parties expect to sign a definitive share purchase agreement. The transfer would include an agreed level of working capital and cash, in exchange for the right to receive 20% of future distributions.

Chief Executive John Sims said the transaction could give the European business an owner with experience in corporate carve-outs and positioning businesses for long-term success.