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Georgia-Pacific to buy Buckeye Technologies

By news admin

ATLANTA (AP) - Georgia-Pacific is buying Buckeye Technologies Inc., boosting its product lineup, for about $1.46 billion.

The privately held Atlanta-based paper, packaging and building products company says it reached a deal to buy all of Buckeye's common stock for $37.50 per share. The price represents a 25 percent premium over Buckeye's Tuesday closing stock price. Its shares are trading at that price as the markets open.

Memphis, Tenn.-based Buckeye makes and markets specialty fibers and nonwoven materials made from wood and cotton. It operates mills in the U.S. and Germany and employs about 1,200 people.

The companies valued the deal at about $1.5 billion, including debt.

The deal remains subject to regulatory approvals and Georgia-Pacific LLC's acquisition of at least 75 percent of Buckeye's shares through a tender offer.