G-P Completes Acquisition of CeCorr Sheet Feeder Plants

Georgia-Pacific Corp. (G-P) has completed the acquisition of CeCorr Inc., which operates 11 corrugated sheet "feeder" plants and one small corrugating medium mill in the United States. Corrugated feeder sheets are sold to box plants for subsequent conversion into corrugated containers. CeCorr ships some 6.3 billion square feet of corrugated sheets per year.

G-P paid $189.9 million in cash and GP Group common stock for all outstanding shares of Indianapolis, IL-based CeCorr, whose sheeter plants are located in Birmingham, AL, Anaheim, CA, Indianapolis, Devins, MA, Jackson, MI, Milford, NJ, Santa Teresa, NM, Batavia, NY, Cincinnati, OH, Lebanon, TN, and Denton, TX. The transaction also included G-P's assumption of CeCorr's $92 million debt.

Pete Correll, G-P's chairman and CEO, says that the CeCorr acquisition will help G-P advance its packaging business growth strategy. Sheet feeders, he points out, are an attractive segment of the packaging business, and their addition allows G-P to deliver a broader range of value-added products to its packaging customers.

With headquarters in Atlanta, G-P is one of the world's leading manufacturers and distributors of pulp, paper, and building products. It has two separate operating groups--the Georgia-Pacific Group (pulp, paper, and building products) and The Timber Company (manages 5.8 million acres of timberland in North America).