Under the terms of the agreement, which has been unanimously approved by both companies' boards of directors, stockholders of Buckeye Technologies will receive $37.50 in cash per share.
Buckeye Technologies, based in Memphis, TN, is a leading manufacturer and marketer of specialty fibers and nonwoven materials made from wood and cotton. The company's manufacturing assets include a specialty pulp mill at Perry, FL; cotton cellulose mills at Memphis, TN, and Lumberton, NC; and mills producing nonwovens at Mt. Holly, NC, and Steinfurt, Germany. Buckeye Technologies also has global sales offices in Beijing, the UK, France, Italy and Switzerland. The company has approximately 1,200 employees worldwide.
"This transaction enables our stockholders to realize significant value, while also representing an important next step in the growth of Buckeye Technologies," says John Crowe, chairman and CEO. "We are pleased that Georgia-Pacific recognizes 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."
"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 fibers and nonwovens businesses of Buckeye Technologies will provide a significant platform for continued growth and success," says Jim Hannan, CEO and president, Georgia-Pacific.
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. The company employs nearly 35,000 people worldwide.