Georgia-Pacific (GP) has agreed to be acquired by commodities conglomerate Koch Industries for $13.2 billion, creating what will be the nation’s largest private company by revenue.
Under the terms of the deal, Koch will make a $48 per share cash tender to GP shareholders and assume $7.8 billion in debt from the paper products giant. Debt financing has been secured by Koch through Citigroup.
Koch also confirmed that GP will continue to do business worldwide under the GP name and continue to operate its businesses from its Atlanta headquarters as an independently managed company.
According to documents filed with securities regulators, GP would have to pay Koch a
termination fee of $370 million if either side breaks up the merger agreement under certain circumstances.