Smurfit-Stone to sell mill to Georgia-Pacific for $355 Million
Smurfit-Stone Container Corporation and Georgia-Pacific LLC have reached a definitive agreement for Georgia-Pacific to purchase the assets of the Brewton, Alabama, white top linerboard and bleached board mill from Smurfit-Stone for approximately $355 million. Net proceeds from the sale will be used by Smurfit-Stone for debt reduction to further improve the company’s financial flexibility.
The companies expect the transaction to be completed by the end of September, subject to standard regulatory review and approvals. The Brewton mill has annual production capacity of approximately 300,000 tons of white top linerboard and 190,000 tons of solid bleached sulfate (SBS).
Christian Fischer, Georgia-Pacific’s executive vice president of packaging, added, “This acquisition will enable us not only to grow, but most importantly, improve our breadth of products to better serve our customers. Both product lines produced at the Brewton mill, the white top linerboard and the bleached board, are recognized for their high quality and printing properties. This cost-competitive mill will be a great complement to our existing packaging business, which includes more than 60 facilities.”