Georgia-Pacific Corp. plans to split its consumer products and packaging business into a separate, publicly traded company under a new name and new direction.
The new company, which will be named later, will include packaging assets formerly owned by Fort James Corp., a manufacturer of thermoformed cups and lids that Georgia-Pacific purchased in 2000, and Georgia-Pacific's reusable plastic container operations, according to spokeswoman Robin Keegan.
Also included are the company's large consumer-product holdings, including brands such as Quilted Northern, Brawny and Dixie, and its pulp and paper operations.
The operations to be split recorded sales of $11.8 billion in 2001, including $2.5 billion for the firm's packaging business. The businesses have about 41,000 employees.
Atlanta-based Georgia-Pacific will retain its building products and distribution business and manage it separately from that of the new company.
Publicly held Georgia-Pacific announced the realignment May 7 after its board approved the move.
Key management of the consumer-products and packaging group will remain with the separated company, to be led by Georgia-Pacific Chairman and Chief Executive Officer Pete Correll.
The new company is planning an initial public offering for shares in the 2002 third quarter, with the full separation planned for the first half of 2003.
Georgia-Pacific has plans to sell 15-20 percent of the new company's shares on the public market.
Bondholders will have the option to exchange existing shares for those in the new company.