International Paper said it is paying $2.2 billion to buy seven mills from Weyerhaeuser that make pulp used in diapers, tissues and other consumer products.
The deal is expected to close before the end of the year.
International Paper said Monday the mills employ about 1,900 people. Georgia and Mississippi have two mills each. The others are in North Carolina, Canada and Poland.
Based in Memphis, Tennessee, International Paper makes paper and packaging and said the deal will expand its product offering to businesses.