G-P Selling Timber Unit To Plum Creek

Georgia-Pacific Corp., Atlanta, Ga., has agreed to sell its Timber Co. subsidiary to Plum Creek Timber Co., Seattle, Wa., reportedly making the latter firm the second-largest private timberland owner in the country.

The sale, said to be valued at roughly $4 billion, including $l billion in debt, was made to help G-P fund its earlier $l I billion acquisition of tissue-paper maker Fort James Corp., Deerfield, Il.

Georgia-Pacific chairman and ceo A.D. "Pete" Correll said the Fort James acquisition will increase the'73year-old firm's market share in the consumer-products arena. "(Now) Georgia-Pacific can efficiently procure wood and fiber for our manufacturing base independently, on the open market, from which more than 8O7o of our raw material needs are already supplied," he said.

If approved, the deal will give Plum Creek a timber portfolio of more than 7.9 million acres in 19 states, an element not lost on president and ceo Rick R. Holley. "We are acquiring some of the most productive timber assets in the United States." he said.

The acquisition includes a 10-year wood supply agreement between Georgia-Pacific and The Timber Co., that ensures continued access to fiber for G-P's manufacturing facilities and providing Plum Creek with a stable, long-term customer for The Timber Co.'s Southeastern timberlands.

"We have demonstrated that manufacturers don't have to own timberlands to be competitive," Correll said, adding that G-P now buys roughly 8O7o of its raw materials on the open market.

ARCHITECTURAL Design

Contest winners are flanked by co-sponsors (1) San Diego Hoo-Hoo Club president Joe Rodriguez (far left) and San Diego Lumber Association oresident G.T. Frost (far right). (2) Bud Baker, Henry Garnjobst Jr., Mark Olson. (3) Ed Gavotto. Raloh Cardwell. The 34th annual wood design contest was open to San Diego Community College sludents.