Buckeye Technologies to Be Acquired for $1.5B

by Christopher Freeburn | April 24, 2013 12:49 pm

business handshake 630 300x199 Buckeye Technologies to Be Acquired for $1.5B[1]Shares of Buckeye Technologies (NYSE:BKI[2]) surged more than 25% in Wednesday trading after Georgia-Pacific said it would buy the company[3].

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.

Earlier this month, shares of Sprint (NYSE:S[4]) jumped after Dish Network (NASDAQ:DISH[5]) said it would outbid Japan’s Softbank (PINK:SFTBF[6]) to acquire the wireless carrier for $25.5 billion[7].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/12/business-handshake-630.jpg
  2. BKI: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKI
  3. it would buy the company: http://www.boston.com/business/technology/2013/04/24/georgia-pacific-buy-buckeye-technologies/J54JER2NKhQ09xmAFnP5VO/story.html
  4. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  5. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  6. SFTBF: http://studio-5.financialcontent.com/investplace/quote?Symbol=SFTBF
  7. acquire the wireless carrier for $25.5 billion: http://investorplace.com/2013/04/sprint-shares-jump-on-25-5b-dish-network-takeover-bid/

Source URL: http://investorplace.com/2013/04/buckeye-technologies-to-be-acquired-for-1-5b/
Short URL: http://invstplc.com/1foPQQI