Georgia-Pacific Corp., Atlanta, said July 17 it's acquiring Fort James Corp., Deerfield, Ill., for about $7.8 billion in cash and stock and assumption of $3.5 billion in debt. The acquisition creates a paper powerhouse that rivals Procter & Gamble Co. and Kimberly-Clark Corp. in consumer tissue products. Pending regulatory and shareholder approval, the combined entity would become the No. 1 manufacturer in the $4 billion bath tissue category and No. 2 in the $2.6 billion paper towel category. The deal would give Georgia-Pacific the No. 2 brand in each category--Fort James' Quilted Northern bath tissue and Brawny towels--in addition to its own brands, which include Angel Soft bath tissue and Sparkle towels. Georgia-Pacific also would get the Dixie and Vanity Fair tableware and napkin brands. DDB
Worldwide, New York, handles Fort James' $30 million account, including the Brawny, Quilted Northern and Dixie brands. Fallon
, New York, handles Georgia-Pacific's $20 million account, including Angel Soft and Sparkle.
Copyright July 2000, Crain Communications Inc.