Georgia-Pacific Inks $1.5B Deal To Absorb Rival Buckeye

Law360, New York (April 24, 2013, 1:16 PM EDT) -- Georgia-Pacific LLC, the paper producer controlled by the billionaire Koch brothers, will absorb specialty fiber maker Buckeye Technologies Inc. in a deal worth $1.5 billion that will broaden the company's business and open new revenue streams, the pair said Wednesday.

Under the transaction's terms, Georgia-Pacific will offer Buckeye stockholders a $37.50-per-share payout, roughly a 25 percent premium over the company's Tuesday close. The total consideration includes the assumption of debt, though the companies did not say how much or sketch out financing plans.

With the pickup,...
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