Paper producer Georgia-Pacific Corp. agreed on Sunday to be bought by conglomerate Koch Industries, Inc. for $13.2 billion in a deal that will make it a privately held Koch subsidiary.
Georgia-Pacific, the maker of Quilted Northern bathroom tissue and Brawny paper towels, said the deal allows it to operate and grow more efficiently, free from the obligations of a publicly traded company.
Koch will pay $48 for each Georgia-Pacific share - a 39 percent premium to the company's closing stock price on November 11.
The deal comes as the U.S. paper industry continues to see profits squeezed by high energy costs, Asian competition and overcapacity.
