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GA-Pacific is bought by Koch Industries

ironchapman

By ironchapman
in Atlanta

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ironchapman City

ironchapman

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That's right. GA-Pacific, one of Atlanta's most prestigous companies and a member of the Fortune 500 is going to be bought by Koch Industries, a nylon manufacturing company based in Wichita, Kansas, for $21 Billion. This will make Koch the largest private company in the nation. It is also Koch's largest transaction in its history.

Quite a surprise for most Atlantans and Georgians.

See More (AJC)

What will this do to Atlanta? Will it be good for us? Bad for us? How will it affect Georgia-Pacific and its employees?

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Andrea Burg

Andrea

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You know, I thought this would have stimulated quite a bit of discussion.

I must've been wrong. Does anyone have something to say about it?

I don't think anyone really knows what's going to happen yet, IC. GP has obviously been one of the city's leading corporate citizens. It's a prestige company of international scope and stature. Its beautiful office tower downtown has been a landmark for 25 years. GP has been one of the critical pillars of the business and civic community here for a long time, and if they were to pick up and move it wouldn't be pretty.

Early reports I've read suggest the Atlanta headquarters will stay put and that top management will be retained. Beyond that, I think people are taking a wait and see attitude.

Who would have thunk 5 years ago that Delta would be bankrupt and that GP would be a subsidiary of a Wichita corporation?

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Andrea Burg

Andrea

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10 years? Andrea, what are you doing on this website - I would be on a beach.

That salary would require over 2000 years for me to make.

Well, okay, so maybe it would take me a little longer than 10 years. :lol:

I could use some beach time, actually. I took my dog for a walk this morning and it was freezing!

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  • 4 weeks later...
ironchapman City

ironchapman

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Well, there are only a few days left until the merger happens. Might as well say good bye to the independent GA-Pacific now. The good news is that the company will still be able to base its operations here and run itself almost like an independent company.

Want more?

See this AJC Article

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ironchapman City

ironchapman

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Georgia Pacfic is no more, or at least as an idependent company. Koch has completed the deal and finished buying out the company. It has named two of its own for the exec position of GA-Pacific.

Koch Industries on Thursday named company veteran Joseph Moeller, 62, Georgia-Pacific's chief executive officer, replacing Pete Correll, who will remain chairman. Joining him in Atlanta will be Bill Caffey, 54, who becomes executive vice president, the same position he held at Koch.

See AJC Article

Sad to see it go. I wonder how this will affect Atlanta?

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atlmangum Whistle-Stop

atlmangum

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Georgia Pacfic is no more, or at least as an idependent company. Koch has completed the deal and finished buying out the company. It has named two of its own for the exec position of GA-Pacific.

See AJC Article

Sad to see it go. I wonder how this will affect Atlanta?

It really shouldn't make that big of an impact. The company will still be based here an ran pretty much the same way. The only difference is you might start seeing alot more of "Koch" and a lot less of "Ga. Pacific." One question I have is if they will take down the Ga. Pacific sign on their building?

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Andrea Burg

Andrea

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It really shouldn't make that big of an impact. The company will still be based here an ran pretty much the same way. The only difference is you might start seeing alot more of "Koch" and a lot less of "Ga. Pacific." One question I have is if they will take down the Ga. Pacific sign on their building?
As I understand it, Georgia Pacific hasn't ceased to exist as a separate corporation. Koch just bought all the stock. It's not uncommon for an individual or corporation to purchase the stock (or enough of it to control the board) in another corporation but still keep it operating as a distinct entity. Sometimes that stock is later sold off again.

Take a company like Delta, for instance. Its stock is owned by people all over the place, and I would not be surprised if the largest shareholders are not residents of Atlanta. The Board of Directors is not all Atlanta people either.

And of course the location of the headquarters doesn't necessarily determine where the major corporate operations are carried out. Nor does it determine what sort of role the company plays in civic life. All of Atlanta's major banks other than SunTrust have been gobbled up by larger banks from other states, yet most of them have continued to provide strong support for Atlanta's arts and civic ventures. By the same token, some of the large corporations that are headquartered here don't have much of a public profile.

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