ATLANTA, Jan. 11 /PRNewswire/ -- Georgia-Pacific announced today that it has signed an agreement to acquire Grant Forest Products' oriented strand board (OSB) facility at Englehart, Ontario and the associated facility at Earlton, Ontario, as well as its OSB facilities at Allendale and Clarendon, S.C., for approximately $400 million.
Grant Forest Products intends to seek approval of the agreement in the near future from the Canadian Court overseeing Grant's Companies' Creditors Arrangement Act case and a United States Bankruptcy Court.
"These are world-class facilities that fit strategically with our current wood products operations and we are pleased with this opportunity to grow our OSB business in Canada and the U.S.," said Mark Luetters, president - Georgia-Pacific Wood Products. "We look forward to closing this deal and having these facilities, and the employees who operate them, join the Georgia-Pacific family."
Georgia-Pacific intends to operate the OSB manufacturing facilities that employ more than 300 people in Ontario and at Allendale, S.C. At the Clarendon plant, Georgia-Pacific plans to complete the unfinished construction and begin operations as soon as market conditions allow, which will entail employing more than 100 people in Clarendon County. In addition, Georgia-Pacific plans to make capital investments worth several million dollars to improve facilities and deliver enhanced reliability and efficiencies.
The transaction is expected to close in the first half of 2010, following appropriate Canadian and U.S. regulatory review and court approval.
Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 40,000 people at more than 300 locations in North America, South America and Europe. Georgia-Pacific creates long-term value by using resources efficiently to provide innovative products and solutions that meet the needs of customers and society, while operating in a manner that is environmentally and socially responsible and economically sound. The company has long been among the nation's leading manufacturers and suppliers of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers, with brands such as Plytanium® plywood, DryPly® water repellent plywood, Ply-Bead® panels and Wood I Beam(TM) and XJ 85(TM) joists offered by Georgia-Pacific Wood Products LLC. DensArmor Plus® interior panels, DensGlass® Sheathing and ToughRock® drywall are offered by Georgia-Pacific Gypsum LLC. The familiar consumer tissue brands of Georgia-Pacific Consumer Products LP include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft 'n Gentle®, Mardi Gras®, So-Dri® and Vanity Fair®. Dixie Consumer Products LLC, a Georgia-Pacific company, manufactures the Dixie® brand of tabletop products. For more information, visit www.gp.com