Georgia-Pacific announced that it would pay $37.50 a share to acquire the maker of specialty fibers, a premium of 25.3% over Buckeye’s prior closing price. Including debt assumed during the transaction, the deal is worth $1.5 billion, the Associated Press noted.
The acquisition must receive approval from regulators. Privately held Georgia-Pacific must also purchased at least 75% of Buckeye shares via a tender offer before the merger can be finalized.
Buckeye’s fibers are used in a diverse range of consumer and industrial products, including baby wipes, napkins and oil filters. The company had a workforce of roughly 1,200 and runs production facilities in Germany and the U.S.