Big new baby: Louisiana-Pacific

Organization of a new plywood, pulp, particleboard, lumber and timber company with more than $300 million in assets has been approved by stockholders of Georgia-Pacific Corp. and ok'd by the governrnent.

The plan sets up an independent Louisiana.Pacific Corp. with approxi. mately 20 percent of G-P's assets. It meets provisions of a settlement order filed earlier by the FTC following a series.of fact.finding hearings.

G-P common stockholders will re' ceive one share of L-P for each four shares of G-P held on the record date, which was expected to be January 5, I973.

The spin-ofi involves 48 plants and mills nationwide, although the FTC sought divestiture of only eight. Plywood plants and timber ownership in both the South and East are involved.

G-P will continue its immediate and long-r'ange growth program after the spin-off with more than $1.6 billion in assets, 170 plants and mills nationwide, in Canada and overseas, and its international sales network. stockholders have been told bv R. B. Pamplin, G.F chairman attd chi.f executive officer. The company's present dividend policy will be maintained.

In addition to being a major plywood manufacturer, new L-P also will be a significant factor in pulp, lumber, particleboard and kitchen cabinets, "and should be a highly competitive growth company," it was indicated.

Louisiana-Pacific has been in full operation as a successful whollyowned subsidiary nearly three months under provisions of an agreement reached initially with the FTC staff after its series of federal hearings held around the nation last summer. The spin-ofi separates L.P completely. f ET'S sell reality in '73. And, let's rJ be realistic on how best to sell it.

G-P retains all of its growing paper and chemical operations and most of its pulp manufacturing, but will have a somewhat smaller percentage of building products initially in its product mix, it was explained.

L-P at the time of spin.off into an independent competitor will resemble G-P of I0 years ago in earning capacity and growth potential, it was noted.

Pamplin said "it is obvious the FTC has won more than it sought under the original divestiture proceedings. However, the rights and potentials of our stockholders and employees have been protected by this settlement."

Too often in the past a building materials manufacturer put together a comprehensive program that fell flat in the marketplace because it overlooked the function of the wholesaler or dealer. Or, it might fail to take into consideration the current consumer mood,

If sales are to be made at retail, the "package" must be strongest at that point. We know tlat homeowners are more interested than ever in improving their houses, but we have to make it easy for them to visualize the end result. They have to be able to relate to their own home.

This is where sales often develop a hitch. Too much is left to the dealer or counterman, who often is too busy to devote much time to a prospect, especially in the evening or on a Saturday when traffic is heaviest.

Homeowners planning a project come in with a long list of questions, and they should if they have done their homework and want a first class job. Even if they have narrowed their choices down, they have specific questions:

"How much does this pannling cost?"

"Do you haoe samples ol the oarious colors?"

"How much would it take to d,o our rootn?"

"What would be the total cost ol rnateri.als?"

"How d,o you iwtall the paneling ouer old, walls?'

"Do you haoe instalhtion sheets tha,t we could, see?"

The list could go on and on. In most cases, all of this information is available. But, unfortunately, not in one place. Working with our headquarters staff, after discussing the problem with wholesalers, dealers and our own Marlite salesmen, we decided to attack this problem head on. Like most manufacturers, we have had displays, estimating charts, price lists, brochures, banners, etc. They did not fit together, however, in one coordi nated unit.

After many trips back to the drawing board, we introduced our decorator panel center, which has scored an immediate hit with dealers because