Georgia-Pacific to Purchase Alabama River and Alabama Pine Pulp Mills From Parsons & Whittemore
Atlanta, Georgia, USA, 02 June 2010 -- Parsons & Whittemore and Georgia-Pacific have reached a definitive agreement for subsidiaries of Georgia-Pacific to purchase Parsons & Whittemore’s Alabama River and Alabama Pine pulp mills in Perdue Hill, Alabama. Terms of the deal were not disclosed.
This acquisition includes the assets of the pulp mills, Alabama River Woodlands, the tall oil plant, the biodiesel plant, the chip mills at Elba and Jacksons Gap, Alabama, and a pulpwood yard at Demopolis, Alabama. All employees of these operations will be offered employment with Georgia‑Pacific. The sale is expected to close in the third quarter of 2010. Both companies are committed to working toward a seamless transition of the business for suppliers and customers. "With the help of literally thousands of people over the past 35 years, we have built a world-class business, with pulp mills that rank among the highest in quality, productivity, safety, and environmental responsibility,” said George Landegger, Parsons & Whittemore chairman and CEO. “Sincere thanks goes out to our employees for their diligent and dedicated efforts, and to all those in the local communities, such as landowners, wood suppliers, and public officials, who had faith in us and who have assisted us greatly." Landegger added, “I am proud of the relationships that we have developed in the Monroe County area and will continue to be active in local economic and social development. The sale to Georgia-Pacific represents a very good fit within the industry, and the pulp mills can look forward with confidence to a secure and successful future,” he said. BMO Capital Markets acted as financial advisor to Parsons & Whittemore in the transaction. Parsons & Whittemore, a privately held company based in Rye Brook, New York, was founded in 1853 and acquired by Karl F. Landegger in 1944. Throughout its history, the company has been recognized as a leading turnkey engineer and builder of pulp and paper mills, having completed some 60 projects in 28 countries. Alabama River Pulp is one of the largest pulp mills in North America and a leading global supplier of hardwood and softwood pulp. 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 approximately 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. For more information, visit www.gp.com.
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