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Purchase to make Koch US' biggest private company
AP, NEW YORK
Tuesday, Nov 15, 2005, Page 12
US paper-products giant Georgia-Pacific Corp has agreed to be acquired for more than US$13 billion by Koch Industries Inc, a deal that would create the US' biggest private company.
The US$13.2 billion cash deal announced on Sunday also calls for Koch to assume US$7.8 billion in Georgia-Pacific debt and will result in the Atlanta-based company becoming a wholly owned subsidiary of Koch. The deal values GP at US$48 per share, a 38.5 percent premium over its closing price of US$34.65 on Friday on the New York Stock Exchange.
Koch, based in Kansas, is a commodities conglomerate that operates refineries and pipelines, manufactures pulp, paper and fibers and trades commodities. With combined annual revenue of some US$80 billion from Georgia-Pacific, Koch would surpass food and farm products maker Cargill Inc as the largest privately held company in the US. Koch employs more than 30,000 people.
Georgia-Pacific's brands include Dixie paper cups. It also makes building products such as plywood, lumber and gypsum wallboard.
The deal marks the first major push into consumer products for Koch.
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