GEORGIA-PACIFIC TO SELL BUTLER PAPER COMPANY TO ALCO STANDARD CORP.
ATLANTA, March 15 /PRNewswire/ -- Georgia-Pacific Corp. (NYSE: GP) today announced that it has signed a letter of intent to sell the assets of Butler Paper Co. to Alco Standard Corp. (NYSE: ASN) of Valley Forge, Pa. Georgia-Pacific's Butler Paper Co. operates 80 distribution centers in 31 states and ranks among the largest paper distributors in the United States. Although the sale price is not being disclosed, Georgia-Pacific expects the sale to result in after-tax cash proceeds to the company of approximately $180 million and an after-tax charge of approximately $35 million (40 cents per share) that will be recognized in the first quarter. The expected proceeds are substantially in excess of the purchase price as a result of a tax loss to be realized in connection with the sale. "After careful review, we determined that continuing to own and operate Butler Paper was not strategic to enhancing our pulp and paper business and better meeting our customers' needs," said A.D. "Pete" Correll, president and chief operating officer. "But Butler Paper is a good distribution network with an excellent group of people. Their support of Georgia-Pacific and our products will continue to be important to both companies' success," Correll said. Georgia-Pacific said it expects to complete the transaction late in the 1993 second quarter or early in the third quarter. The sale is subject to authorization by both companies' boards of directors, execution of a definitive agreement and U.S. regulatory approvals. -0- 3/15/93 /CONTACT: Sheila Weidman of Georgia-Pacific, 404-521-4732, or Corinne Dubois of Butler Paper, 303-799-7406/ (GP ASN)
CO: Georgia-Pacific Corp.; Butler Paper Co.; Alco Standard Corp. ST: Georgia, Pennsylvania IN: PAP SU: TNM
RA-BN -- AT006 -- 6089 03/15/93 14:03 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 15, 1993|
|Previous Article:||REGISTRATION STATEMENTS DECLARED EFFECTIVE FOR PACIFIC LUMBER CO. AND SUBSIDIARY|
|Next Article:||PARAMAX TO BEGIN WORK ON OPTICAL TRANSMISSIONS FOR U.S. NAVY|