Over the course of a business’ life, mergers and acquisitions are not uncommon. An acquisition is when one company, typically a larger company, buys another company but both companies maintain their respective legal existence.
Louisiana residents may already be aware that recently, the Department of Justice cleared a multi-million dollar acquisition of several Temple-Inland facilities by Georgia-Pacific in approximately eight states including one facility in Louisiana. Presently, Georgia-Pacific, which is a manufacturer of various paper, building products, packaging and other related products, already has two plants in Louisiana.
With the acquisition of the third plant in Louisiana, Georgia-Pacific hopes to combine its existing assets into one building products business. In addition to the Louisiana plant, fourteen other Temple-Inland facilities were acquired. It is estimated that out of the nearly 35,000 employees of Georgia-Pacific worldwide, a little over 1300 are employed in Louisiana.
Specifically, Georgia-Pacific brought a lumber plant in DeQuicy, Louisiana to supplement the other two Louisiana plants in West Monroe and Port Hudson which make corrugated boxes and tissue paper, printing paper and paper towels.
Reasons to acquire another company may range from a need for diversification to expanding the business. Such transactions are typically complex. During an acquisition, it is crucial for a company to have an experienced business law attorney at its side who can help ease the process by watching out for legal pitfalls, preparing all the necessary documents, and negotiating the details of the transaction.
Further, it is important for a business to examine and understand the nuances of the transaction such as potential liabilities and tax implications. No two acquisitions are alike, and thus having a knowledgeable attorney can help a business move forward during these transactions, and make the right decisions for the overall success of the business.
Source: The Advocate, “Georgia-Pacific acquisition includes La. plant,” July 20, 2012