Georgia-Pacific to buy Buckeye Technologies for $1.5 billion
(Reuters) - Privately held Georgia-Pacific LLC struck a deal to buy specialty fiber maker Buckeye Technologies Inc BKI.N for nearly $1.5 billion in cash, paying a 25 percent premium for the company, which makes fibers from wood and cotton that are used in products including diapers, automotive filters and toilet paper.
Georgia-Pacific, which is owned by Koch Industries, said on Wednesday it will pay Buckeye's shareholders $37.50 per share. Buckeye shares closed at $29.93 on the New York Stock Exchange on Tuesday.
Georgia-Pacific makes building products, tissue, packaging, paper, cellulose and related chemicals.
Barclays provided financial advice to Buckeye, and law firm Dechert was its legal advisor. UBS and Blackstone were Georgia-Pacific's financial advisors.
Buckeyes shares were up 25.3 percent to $37.51 in early trading on the New York Stock Exchange on Wednesday.
(Reporting by Garima Goel in Bangalore; Editing by Sriraj Kalluvila and Chris Reese)