Home » Koch Industries to acquire Georgia-Pacific in $13.2B deal
Koch Industries to acquire Georgia-Pacific in $13.2B deal
November 14, 2005
Koch Industries Inc., Wichita, KS, announced its subsidiary Koch Forest Products Inc. will buy building-products and paper maker Georgia-Pacific Corp., Atlanta, GA, for $48 a share in a deal worth $13.2 billion. The transaction has been approved by the boards of directors of Georgia-Pacific and Koch Industries.
Georgia-Pacific will continue to operate under the same name at its Atlanta headquarters. Koch Forest Products expects to launch a cash tender for all outstanding shares of Georgia-Pacific common stock no later than Nov. 18, followed by a second step cash-out merger at the offer price. The closing of the deal is expected to be finished quickly.
Included in the transaction are all assets of Georgia-Pacific, including its North America and international consumer products segments, as well as its packaging, building products, paper and bleached board segments.
Koch acquired Georgia-Pacific's non-integrated market and fluff pulp operations at New Augusta, Miss., and Brunswick, Ga., in May 2004. Since the purchase, Koch has invested in these businesses, operating as Koch Cellulose. Upon completion of this transaction, these operations will be reintegrated with Georgia-Pacific businesses.
Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of tissue, packaging, paper, building products and related chemicals. With 2004 annual sales of approximately $20 billion, the company employs 55,000 people at more than 300 locations in North America and Europe. Georgia-Pacific's building products manufacturing business has long been among the nation's leading supplier of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers. Koch Industries, Inc., based in Wichita, KS, owns a diverse group of companies engaged in trading, operations and investments worldwide, including a presence in 50 countries in such core industries as trading, petroleum, chemicals, energy, fibers, fertilizers, pulp and paper, ranching, securities and finance.