Buckeye Technologies to Be Acquired for $1.5B

business handshake 630Shares of Buckeye Technologies (NYSE:BKI) surged more than 25% in Wednesday trading after Georgia-Pacific said it would buy the company.

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) jumped after Dish Network (NASDAQ:DISH) said it would outbid Japan’s Softbank (PINK:SFTBF) to acquire the wireless carrier for $25.5 billion.

Article printed from InvestorPlace Media, https://investorplace.com/2013/04/buckeye-technologies-to-be-acquired-for-1-5b/.

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