Bakelite Synthetics, Atlanta, on May 27 announced the completion of its acquisition of Georgia-Pacific’s Chemicals business, which is a part of Georgia-Pacific Inc., Atlanta. No transaction amount was reported. Georgia-Pacific is owned by Koch Industries Inc., Wichita.
Bakelite said Georgia-Pacific Chemicals brings with it complementary resin and formaldehyde technology and end markets in the building materials, transportation, industrial, chemical intermediate, and specialty resins space. This acquisition includes 11 chemical facilities employing approximately 600 people in the U.S. and South America. It also includes an R&D facility in Decatur, Ga.
“We are excited about the opportunities that will result from the combined strengths of the two companies,” said J.P. Aucoin, CEO of Bakelite Synthetics. “This acquisition enables us to deliver greater value to our customers through a broader product offering and expanded geographic reach. It also enables us to deliver on significant organic growth with the strong tailwinds in U.S. residential construction. Lastly, we look forward to welcoming Georgia-Pacific Chemicals’ associates to Bakelite Synthetics as we bring both organizations together with a rich history of customized product development and customer service.”
The company’s new headquarters will be based in Atlanta. The combined company will consist of approximately 1,500 associates and 21 manufacturing sites operating in 10 countries.
Georgia-Pacific said the Chemical business is highly complementary to Bakelite’s existing platforms in the U.S. and Europe. The sale does not include Georgia-Pacific Pine Chemicals, which is part of Georgia Pacific’s Packaging and Cellulose businesses.
Bakelite Synthetics was formed by private equity firms Black Diamond, Stamford, Conn., and Investindustrial, London, after they purchased the Phenolic Specialty Resin, Hexamine, and European-based Forest Products Resins businesses from Hexion Inc., Columbus, Ohio, in 2020 (GM Oct. 9, 2020).
Koch bought Georgia-Pacific in 2005 (GM Nov. 21, 2005), after having purchased two paper-related businesses from the company in 2004.