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Georgia-Pacific to acquire Buckeye Technologies
Buckeye Technologies and Georgia-Pacific have announced that they have reached a definitive agreement for Georgia-Pacific to acquire all of the outstanding shares of Buckeye Technologies' common stock, as well as its five manufacturing facilities, global sales offices and approximately 1,200 employees, for $37.50 per share in cash. The transaction, subject to completion, is valued at approximately $1.5 billion, including debt.
Buckeye Technologies, based in Memphis, Tenn., manufactures and markets speciality fibres and nonwoven materials made from wood and cotton. The company's manufacturing assets include a pulp mill at Perry, Fla.; cotton cellulose mills at Memphis, Tenn., and Lumberton, N.C.; and mills producing nonwovens at Mt. Holly, N.C., and Steinfurt, Germany. The company also has global sales offices in Beijing, the UK, France, Italy and Switzerland and has approximately 1,200 employees worldwide.
Headquartered in Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals and is renowned in the industry for its away-from-home washroom products. The company employs nearly 35,000 people worldwide.
"This transaction enables our stockholders to realise significant value, while also representing an important next step in the growth of Buckeye Technologies," said John Crowe , chairman and CEO. "We are pleased that Georgia-Pacific recognises the significant value of our company's special and unique assets, talented employees, and research and development capabilities. Georgia-Pacific's acquisition of Buckeye will provide our company and our employees with exciting future growth opportunities.
"We will continue to execute on our business plan in partnership with a committed new owner that has a long history of delivering superior business performance through its dedication to operational excellence and innovation."
Jim Hannan, CEO and president, Georgia-Pacific, said: "Buckeye Technologies' competitive assets and capabilities strongly complement Georgia-Pacific's existing cellulose business and products. The talented employees, innovation capabilities, advanced technologies and specialty fibres and nonwovens businesses of Buckeye Technologies will provide a significant platform for continued growth and success".
23rd May 2013