On Feb. 26, Georgia-Pacific Corp. and Koch Industries Inc. announced they finalized a deal under which Koch will acquire some of Georgia-Pacific's pulp and paper operations — including Old Augusta Railroad Co. — for $610 million.
Georgia-Pacific expects to use proceeds to reduce $535 million in debt; an additional $73 million of debt will be assumed by new Koch subsidiary Koch Cellulose L.L.C.
Expected to close early in the second quarter — pending regulatory approvals — the transaction includes Georgia-Pacific's pulp mills in Brunswick, Ga., and New Augusta, Miss.; the 2.5-mile short line, which serves the New Augusta mill; and assets from two international sales offices.
Georgia-Pacific President-Pulp W. Wes Jones was named Koch Cellulose president, pending completion of the sale.
In December, Georgia-Pacific sold three short lines for $55.6 million to Genesee & Wyoming Inc.: the 15-mile Chattahoochee Industrial Railroad, 53-mile Arkansas, Louisiana & Mississippi Railroad Co., and 57-mile Fordyce & Princeton Railroad Co.
Source: Progressive Railroading Daily News
