Gypsum industry news

US: Georgia-Pacific has announced that it has reached an agreement to acquire the assets of the Temple-Inland Building Products business from International Paper. The purchase price is US$750m and the transaction is subject to regulatory approvals. The acquisition is anticipated to close in the first quarter of 2013.

As part of the transaction International Paper will sell 16 production facilities including four gypsum wallboard facilities, five solid wood mills, four particleboard plants, two medium-density fibreboard plants and one fibreboard factory. The sites are located across eight US states, mainly in the southeastern and eastern parts of the country.

"These high-quality assets with teams of talented employees are strategically located near large, growing regions of building products customers and will fit well into our existing operations," said Jim Hannan, Georgia-Pacific chief executive officer and president. "This will allow us to expand our geographic footprint and enhance our service to new and existing customers."

US: The Drake Group LLC has announced that LKL Associates (LKL), based in West Jordan, Utah has joined The Drake Group LLC as a Member/Owner.

LKL is a privately owned company founded in Utah in 1978. It is a leading, independent building products dealer focused on the residential and commercial construction markets. LKL's product offering includes gypsum wallboard, steel studs, insulation, stucco and all associated finishing materials, tools and accessories that are utilised by wall and ceiling contractors.

In addition to its West Jordan headquarters LKL operates branch locations in Orem and Layton, both in Utah.

US: International Paper Company (IP) has announced that it has completed its acquisition of Temple-Inland Inc. through the merger of its wholly-owned subsidiary Metal Acquisition Inc with Temple-Inland. Temple-Inland, which has four US wallboard plants, is now a wholly-owned subsidiary of International Paper.

Under the terms of the transaction, each issued and outstanding share of Temple-Inland common stock has been converted into the right to receive US$32 in cash without interest thereon, less any applicable withholding taxes. Including the assumption of approximately US$700m in Temple-Inland net debt, the total transaction value is approximately US$4.5bn. As a result of the acquisition, Temple-Inland's common stock ceased trading on the New York Stock Exchange on 13 February 2012.

International Paper Chairman and CEO John Faraci said, "We are very pleased to have completed this compelling transaction. The combination of International Paper and Temple-Inland strengthens our North American packaging business and enhances our ability to generate cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we successfully integrate our businesses and create an even stronger company with substantial benefits for our customers, employees and shareholders."

Asia: Australian building material's group Boral has announced that it has completed its acquisition of Lafarge's interests in the two companies' former joint-venture Lafarge Boral Gypsum Asia. The business has been renamed Boral Gypsum Asia (BGA) and transition plans are in place for product branding in each country. BGA has performed to expectations since the acquisition was announced in August 2011.

The chief executive of Boral, Mark Selway, said, "We are delighted to be able to fully integrate BGA into our group. The continued growth of BGA is a strategic priority and we look forward to working with the management team and employees to develop and execute our plans for the future."

US: International Paper Co. (IP), the world's largest pulp and paper maker, has agreed to acquire Temple-Inland Inc for USD3.7bn. Temple-Inland, which is based in Austin, Texas and has four US wallboard plants, previously rejected a bid made by IP on 6 June 2011 because it was too low.

"The strategic benefits of this combination are clear and we are pleased to be able to move forward on terms that are financially attractive for both sets of shareholders," said International Paper Chief Executive Officer John Faraci in a statement.

Turkey: Saint-Gobain has completed the acquisition of Doğaner, a Turkish manufacturer of plaster and wallboard. The company operates a plant with an annual production capacity of 500,000t/yr of plaster and 12MM2/yr of plasterboard, which is located 50km southeast of the Turkish capital Ankara.

In 2010 Doğaner generated revenue of nearly Euro22m and employed 109 people. The acquisition will enable Saint-Gobain's Gypsum Activity to consolidate its position in a large and growing market and to enhance its current product range by offering locally manufactured wallboard.

Australia: Lafarge has announced the sale of its Australian gypsum operations to Knauf for net proceeds of Euro120m.

Lafarge's Australian Gypsum business represents two manufacturing facilities for gypsum wallboard and other compounds along with a national network of distribution and retail centres. In 2010, Lafarge's Australian operations generated EBITDA of Euro13m. The completion of this deal is expected to happen in the third quarter of 2011.

This news follows Lafarge's decision to sell its gypsum interests in Europe and South America to the Belgian Etex Group (announced on 14 July 2011 – read full story here). Under this proposed agreement, Lafarge would receive net cash proceeds of approximately Euro850m and in addition would receive a 20% interest in the new partnership. The partnership would combine the European and South American Gypsum activities of both groups.