$3bn Private Equity Bidding War for Georgia-Pacific Corporation's European Tissue Business

Strategic Insights -

Europe's largest manufacturer of toilet rolls is at the center of a heated bidding war, with investment banks Deutsche Bank and Goldman Sachs orchestrating the sale of Georgia-Pacific Corporation's European tissue business. The German-based division, which produces hundreds of millions of toilet rolls and tissue products annually, is valued at approximately $2-3 billion. This highly sought-after asset is expected to attract intense competition from notable private equity firms, including KKR, Blackstone, TDR Capital, BC Partners, and Carlyle. The sale follows Koch Industries' acquisition of Georgia-Pacific Corporation in 2005, and the potential buyers are eyeing the prized European brands, including Nouvelle and Lotus.

Key Takeaways:

  • Georgia-Pacific Corporation's European tissue business is valued at approximately $2-3 billion, making it one of Europe's largest manufacturers of toilet rolls.
  • The business, which employs hundreds of millions of people, is owned by Koch Industries, one of America's largest privately owned industrial conglomerates.
  • The private equity firms competing for the business include KKR, Blackstone, TDR Capital, BC Partners, and Carlyle, among others.
  • The sale follows Koch Industries' acquisition of Georgia-Pacific Corporation in 2005, with Koch Industries employing approximately 80,000 people and being worth $60 billion.
  • The European tissue business owns several notable brands, including Nouvelle and Lotus, with presence in several UK supermarkets.
  • The potential sale could lead to a highly competitive bidding process, as described by a banker familiar with the situation: "It is going to be a bun fight."

Statistics:

  • $2-3 billion: approximate value of Georgia-Pacific Corporation's European tissue business.
  • $60 billion: estimated worth of Koch Industries.
  • 80,000: number of employees at Koch Industries.
  • 2005: The year Koch Industries acquired Georgia-Pacific Corporation.
  • Several UK supermarkets: carrying the Nouvelle brand.
  • Hundreds of millions: people employed by the European tissue business annually.
  • 2005: The year Koch Industries acquired Georgia-Pacific Corporation.

Sources:

  • Koch Industries: Koch Industries did not comment.
  • Georgia-Pacific Corporation: Georgia-Pacific did not return calls for comment.
  • An unnamed banker: "It is going to be a bun fight."