NEW YORK -- Paper products giant Georgia-Pacific, the maker of Brawny paper towels and Angel Soft tissue, has agreed to be acquired for more than $13 billion by Koch Industries.

The deal would create the nation's biggest private company.

The cash deal announced Sunday also calls for Koch to assume $7.8 billion in Georgia-Pacific debt and will result in the Atlanta-based company becoming a wholly-owned subsidiary of Koch.

The deal values GP at $48 per share.

Koch, based in Wichita, Kan., is a commodities conglomerate that operates refineries and pipelines, trades commodities, and manufactures pulp, paper and fibers.

Besides Brawny, Georgia-Pacific's brands include Dixie paper cups and Quilted Northern bath tissue.

The company also makes building products such as plywood, lumber and gypsum wallboard.

Koch said that Georgia-Pacific would continue to do business worldwide under the Georgia-Pacific name and continue to operate its businesses from its Atlanta headquarters as an independently-managed company.

"Koch’s acquisition of Georgia-Pacific will enable us to move into the future in an exciting fashion and continue achieving our financial and operating goals with committed new ownership that is exceptionally strong financially, has a long history of outstanding business success, and a dedication to operational excellence," said A.D. "Pete" Correll, Georgia-Pacific's CEO.

Georgia-Pacific is one of the world’s leading manufacturers and marketers of tissue, packaging, paper, building products and related chemicals.

With 2004 annual sales of approximately $20 billion, the company employs 55,000 people at more than 300 locations in North America and Europe.

Koch Industries -- a diverse group of companies engaged in trading, operations and investments worldwide -- operates in 50 countries in industries such as trading, petroleum, chemicals, energy, fibers, fertilizers, pulp and paper, ranching, securities and finance.

With Georgia-Pacific, Koch will have annual revenue of some $80 billion.

That would help Koch surpass food and farm products maker Cargill Inc. as the largest privately held company in the U.S.

Koch employs more than 30,000 people.