MEMPHIS, Tenn. and ATLANTA—Forest and chemical products giant Georgia-Pacific is buying specialty fibres manufacturer Buckeye Technologies Inc. in a deal worth approximately $1.5-billion.
The two firms reached a deal where Atlanta-based Georgia-Pacific will buy all outstanding shares of Buckeye for $37.50 per share in cash, which represents a premium of approximately 29 per cent based on the closing price of the stock over the week before the deal was announced.
Both companies’ boards of directors unanimously approved the deal.
Based in Memphis, Tenn., Buckeye makes specialty fibres and non-woven materials from wood and cotton.
The company’s manufacturing assets include a specialty pulp mill at Perry, Fla.; cotton cellulose mills in Memphis, Tenn., and Lumberton, N.C.; and mills producing non-wovens at Mt. Holly, N.C., and Steinfurt, Germany.
Buckeye employs about 1,200 people worldwide.