Sierra Pacific to Buy Georgia-Pacific Plants

Times Staff and Wire Reports

Georgia-Pacific Corp. agreed to sell land and other assets to privately held Sierra Pacific Holding Co. of Redding for about $320 million. Atlanta-based Georgia-Pacific said it expects to record a gain of about $80 million on the sale of 127,000 acres of timberland, a sawmill and a particleboard plant in Martell, Calif. The mill, which can produce as much as 137 million board feet a year, is the second-largest of Georgia-Pacific's 39 lumber mills. The particleboard plant, with annual capacity of about 140 million square feet, is the fifth-largest of nine such plants at the company. The deal is expected to be completed in the second quarter. Georgia-Pacific shares rose 75 cents to close at $71.375 on the NYSE.

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