board approved a plan to sell the company's consumer products subsidiary to the public in an initial public offering scheduled for the third quarter.
The unit, which has sales of about $12 billion, will be separated from the parent via the public sale of up to 20% of its equity while the remainder will be spun off to GP shareholders. The IPO is expected to raise up to $1.5 billion for Georgia-Pacific, money it plans to use to pay down debt.
The consumer product segment is the largest U.S. tissue maker and also sells Dixie paper cups. The parent will continue to run its $13 billion building products unit following a failed attempt to sell it earlier this year. The company said its asbestos liability would remain with the building products unit.