Georgia-Pacific agrees to buy five International Paper sites

Georgia-Pacific Corp. on December 21 announced that it has reached definitive agreements with International Paper to purchase five of the company's wood products sites for approximately $237 million, including working capital.

The sites included in the acquisition are:

• Three integrated complexes with plywood plants and lumber mills at Camden, Texas; Gurdon, Ark.; and Springhill, La.
• A plywood plant at Corrigan, Texas
• An engineered lumber facility at Thorsby, Ala.

These facilities employ approximately 2,400 people.

"Our company is making long-term, strategic investments in our businesses, and we are committed to growth – organically, through acquisitions and innovation," said Joseph W. Moeller, chairman and chief executive officer. "Investments in building products, such as this, are a key part of our strategy, and we see opportunities for growth across every Georgia-Pacific business."

Michael T. Rehwinkel, president of Georgia-Pacific wood products, said, "The acquisition of these five sites will complement our company's current wood products business, which includes more than 50 facilities. It will add additional cost-competitive plywood and lumber facilities, and improve our overall production and transportation costs. It also further enhances our ability to serve key customers throughout the United States, and in particular, those customers growing in the West. We're excited to have these employees and facilities become part of Georgia-Pacific."

The transactions are subject to regulatory approval and are expected to close in the first half of 2007.

Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of tissue, packaging, paper, pulp, building products and related chemicals. The company employs approximately 50,000 people at more than 300 locations in North America, South America and Europe.