Koch to buy Georgia-Pacific for $13.2 bn

Nov 14 | Updated: Nov 15 2005, 08:02am hrs
Koch Industries Inc agreed to buy Georgia-Pacific Corp for $13.2 billion in cash, adding Dixie paper cups, cardboard boxes and lumber to fuel and chemical businesses tobecome the largest closely held company in the US.

Koch will pay $48 for each Georgia-Pacific share, or 39% more than the stock's $34.65 closing price on Nov 11, the companies said yesterday in a joint statement. The transaction would be the biggest ever for Wichita, Kansas-based Koch.

Chief executive officer Charles Koch, whose family controls the company his father founded during the Depression, is taking over a business threatened by rising energy costs and sluggish paper and lumber prices.

International Paper Co and Smurfit-Stone Container Corp are among forest-productscompanies that are trying to cope by shutting mills or selling assets.