Paperlinx will sell its US businesses as the Australian paper merchant looks to improve its profitability.
Paperlinx has sold its Spicers USA and Kelly Paper units in the US to Central National Gotteman for $US76 million. It has also received approval by European authorities for the €45m ($56m) sale of its Italian operation.
According to the company, it is expecting a net loss of $171m for the 12 months to June 30, up from a $108m loss for the previous financial year.
PaperlinX said that demand for paper was expected to decline by about three to five per cent each year in most of the markets that it supplies for the foreseeable future.
Reducing costs to match the declining market had been the priority of a strategic review of the company's operations