Georgia-Pacific Reaches Agreement to Purchase Alabama River and Alabama Pine Pulp Mills

/PRNewswire/ -- Parsons & Whittemore and Georgia-Pacific have reached a definitive agreement for subsidiaries of Georgia-Pacific to purchase Parsons & Whittemore's Alabama River and Alabama Pine pulp mills in Perdue Hill, Ala. Terms of the deal were not disclosed.

This acquisition includes the assets of the pulp mills, Alabama River Woodlands, the tall oil plant, the biodiesel plant, the chip mills at Elba and Jacksons Gap, Ala., and a pulpwood yard at Demopolis, Ala. All employees of these operations will be offered employment with Georgia-Pacific. The sale is expected to close in the third quarter of this year. Both companies are committed to working toward a seamless transition of the business for suppliers and customers.

"With the help of literally thousands of people over the past 35 years, we have built a world-class business, with pulp mills that rank among the highest in quality, productivity, safety and environmental responsibility," said George Landegger, Parsons & Whittemore chairman and CEO. "Sincere thanks goes out to our employees for their diligent and dedicated efforts, and to all those in the local communities, such as landowners, wood suppliers and public officials, who had faith in us and who have assisted us greatly.

Landegger added, "I am proud of the relationships that we have developed in the Monroe County area and will continue to be active in local economic and social development. The sale to Georgia-Pacific represents a very good fit within the industry, and the pulp mills can look forward with confidence to a secure and successful future."

"Georgia-Pacific is committed to strategic growth of our businesses, both organically as well as through acquisition and innovation," said Jim Hannan, Georgia-Pacific CEO and president. "The employees and assets of Alabama River and Alabama Pine will be fully integrated into our GP Cellulose business unit. We believe this investment will add long-term value to our company, our cellulose business and the communities where we operate."

"We are excited to integrate the talented employees and high quality assets of Alabama River and Alabama Pine into our GP Cellulose business," said Pat Boushka, GP Cellulose president. "We look forward to serving the existing customers of these businesses and the completion next year of the current fluff conversion project so that we can continue to grow with our global fluff customers."

GP Cellulose is a non-integrated supplier of market and fluff pulp to global markets, with state-of-the-art pulp mills in Brunswick, Ga., and New Augusta, Miss. Commercial offices are located in Atlanta; Hong Kong; Montevideo, Uruguay; Shanghai, China; and Zug, Switzerland. GP Cellulose's Brunswick and Leaf River mills produce an array of pulp grades, which are delivered to every region of the world for a wide variety of end uses and converting technologies.

BMO Capital Markets acted as financial advisor to Parsons & Whittemore in the transaction.

Parsons & Whittemore, a privately held company based in Rye Brook, N.Y., was founded in 1853 and acquired by Karl F. Landegger in 1944. Throughout its history, the company has been recognized as a leading turnkey engineer/builder of pulp and paper mills, having completed some 60 projects in 28 countries. Alabama River Pulp is one of the largest pulp mills in North America and a leading global supplier of hardwood and softwood pulp.

Headquartered at 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 more than 40,000 people at approximately 300 locations in North America, South America and Europe. Georgia-Pacific creates long-term value by using resources efficiently to provide innovative products and solutions that meet the needs of customers and society, while operating in a manner that is environmentally and socially responsible and economically sound. For more information, visit www.gp.com.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Georgia-Pacific Completes Acquisition of OSB Mills in South Carolina and Canada

/PRNewswire/ -- Georgia-Pacific today announced that is has completed the purchase of Grant Forest Products' oriented strand board (OSB) facilities at Allendale and Clarendon, S.C., as well as the facility at Englehart, Ontario, and the associated facility at Earlton, Ontario. The acquisition, first announced in January, totaled approximately $400 million.

"This acquisition represents a long-term, strategic investment by Georgia-Pacific, which will add value to our customers and our existing operations in Canada and the United States," said Mark Luetters, President - Georgia-Pacific Wood Products. "Georgia-Pacific is committed to working closely with employees, customers and suppliers as well as local government and business to ensure that the transition is as smooth and seamless as possible. We look forward to hitting the ground running and maximizing the potential of these facilities."

Georgia-Pacific OSB products include BlueRibbon® rated sheathing and sub-floor, Thermostat® OSB radiant barrier sheathing, DryGuard® enhanced OSB sub-floor and Nautilus® wall sheathing with pre-applied house wrap. The company also will offer many of the additional products made at the new facilities, including larger panels.

The process for the acquisition has involved a series of governmental approvals on both sides of the U.S. and Canadian border. These have included the Canadian court overseeing the Grant Forest Products Companies' Creditors Agreement Act filing, the Canadian Competition Bureau, the United States Federal Trade Commission, Investment Canada and the U.S. Bankruptcy Court in Delaware.

Georgia-Pacific currently has seven facilities operating in South Carolina as well as a wood and fiber supply office at Prosperity. In the state, Georgia-Pacific manufactures Dixie® products, corrugated packaging, thermosetting resins and building products.

Headquartered at 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 more than 40,000 people at more than 300 locations in North America, South America and Europe. Georgia-Pacific creates long-term value by using resources efficiently to provide innovative products and solutions that meet the needs of customers and society, while operating in a manner that is environmentally and socially responsible and economically sound. The company has long been among the nation's leading manufacturers and suppliers of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers, with brands such as Plytanium® plywood, DryPly® water repellent plywood, Ply-Bead® panels and Wood I Beam(TM) and XJ 85(TM) joists offered by Georgia-Pacific Wood Products LLC. DensArmor Plus® interior panels, DensGlass® Sheathing and ToughRock® drywall are offered by Georgia-Pacific Gypsum LLC. The familiar consumer tissue brands of Georgia-Pacific Consumer Products LP include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft 'n Gentle®, Mardi Gras®, So-Dri® and Vanity Fair®. Dixie Consumer Products LLC, a Georgia-Pacific company, manufactures the Dixie® brand of tabletop products. For more information, visit www.gp.com

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Georgia-Pacific Announces Interest in Acquisition of Certain Grant Forest Products Facilities

/PRNewswire/ -- Georgia-Pacific announced today that it has signed an agreement to acquire Grant Forest Products' oriented strand board (OSB) facility at Englehart, Ontario and the associated facility at Earlton, Ontario, as well as its OSB facilities at Allendale and Clarendon, S.C., for approximately $400 million.

Grant Forest Products intends to seek approval of the agreement in the near future from the Canadian Court overseeing Grant's Companies' Creditors Arrangement Act case and a United States Bankruptcy Court.

"These are world-class facilities that fit strategically with our current wood products operations and we are pleased with this opportunity to grow our OSB business in Canada and the U.S.," said Mark Luetters, president - Georgia-Pacific Wood Products. "We look forward to closing this deal and having these facilities, and the employees who operate them, join the Georgia-Pacific family."

Georgia-Pacific intends to operate the OSB manufacturing facilities that employ more than 300 people in Ontario and at Allendale, S.C. At the Clarendon plant, Georgia-Pacific plans to complete the unfinished construction and begin operations as soon as market conditions allow, which will entail employing more than 100 people in Clarendon County. In addition, Georgia-Pacific plans to make capital investments worth several million dollars to improve facilities and deliver enhanced reliability and efficiencies.

The transaction is expected to close in the first half of 2010, following appropriate Canadian and U.S. regulatory review and court approval.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter: @GAFrontPage