International Paper Co. (IP) completed its acquisition of Temple-Inland after receiving clearance from the federal Justice Department on Feb. 10, the company announced on Monday.

As part of the clearance agreement, IP promised to divest two Temple-Inland facilities and one of its own plants. IP will also pay $32 per share of Temple-Inland stock and take on approximately $700 million of the company’s debt. The total transaction is valued at $4.5 billion.

As a result of the acquisition, Temple-Inland stock was no longer trading on the New York Stock Exchange as of Monday.

“We are very pleased to have completed this compelling transaction,” said John Faraci, chairman and CEO of IP. “The combination of International Paper and Temple-Inland strengthens our North American Packaging business and enhances our ability to generate cash flow while maintaining our strong balance sheet.”

The divestiture agreement is part of a consent decree filed in federal court. That action cleared a major roadblock that had held up the deal since it was announced last September. The decree calls for IP and Temple-Inland to divest, within four months following their merger, roughly 970,000 tons of containerboard mill capacity houses at Temple-Inland facilities in Ontario, Calif., and New Johnsonville, Tenn., as well as at the IP plant in Hueneme, Calif. If it needs more time to shed the facilities, IP can get up to two 30-day extensions.

"We are pleased to have reached an agreement with the [Justice Department] that addresses their concerns and preserves the value in the combination of these two fine companies," said IP chairman and CEO John Faraci following the agreement announcement.

IP is solely engaged in paper and packaging with operations throughout the globe with net sales of $26 billion in 2011. Temple-Inland gets more than four-fifths of its revenues and all of its profits from corrugated packaging; the rest comes from building products.

IP figures the new combination will produce synergies in operations, freight logistics, selling expense, and overhead worth $300 million in the first two years after the firms come together.