Buckeye Technologies Inc and Georgia-Pacific LLC have reached a ‘definitive agreement for Georgia-Pacific to acquire all of the outstanding shares of Buckeye Technologies’ common stock for $37.50 per share in cash. The transaction, subject to completion, is valued at about $1.5 billion, including debt.’
Buckeye Technologies’ stockholders will receive $37.50 in cash per share, representing a premium of some 29 percent based on the average closing price of Buckeye Technologies’ common stock over the last week.
Georgia-Pacific expects to launch a cash tender offer for all outstanding shares of Buckeye Technologies’ common stock.
Buckeye Technologies, based in Memphis, Tennessee, is a leading manufacturer and marketer of specialty fibres and nonwoven materials made from wood and cotton. The company’s manufacturing assets include a specialty pulp mill at Perry, Florida; cotton cellulose mills at Memphis, and Lumberton, North Carolina; and mills producing nonwovens at Mt Holly, North Carolina, and Steinfurt, Germany. Buckeye Technologies also has global sales offices in Beijing, the UK, France, Italy and Switzerland. The company has about 1,200 employees 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, Buckeye 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.”
According to Georgia-Pacific’s CEO Jim Hannan, “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.”