RICHMOND, Va.--(BUSINESS WIRE)--MeadWestvaco Corporation (NYSE: MWV), a global leader in packaging and packaging solutions, announced today it has signed a definitive agreement to sell its European-based tobacco folding carton business to AR Packaging Group AB, a maker of paperboard cartons, flexible packaging, and trays based in Lund, Sweden. The business has annual revenue of approximately $190 million (€146 million), which is included in MWV’s Food & Beverage segment. Terms of the agreement were not disclosed, and the transaction is expected to be completed in the next several months.
“MWV has long been—and remains—committed to our customers in the global tobacco market,” said Joe McNamara, president of MWV’s Tobacco business. “This transaction gives us the opportunity to further focus our participation on our leadership position in high-quality paperboard for tobacco and other premium packaging markets around the world. Our strong teams and facilities in the folding carton space will flourish as part of AR Packaging, and MWV will continue to serve our global customers as the market for high-quality paperboard grows in many regions.”
MWV’s European tobacco folding carton business specializes in the manufacture and printing of hinge-lid boxes, display cartons, and high-impact cigarette packaging, as well as folding carton packaging for some chocolate confectionery and consumer apparel segments. The business has deep customer relationships in western and eastern Europe and includes manufacturing operations at three facilities in Graz, Austria; Krakow, Poland; and Moscow, Russia, which have a total of 680 employees. Also included in the sale is the tobacco and confectionery folding carton business currently served by MWV’s plant in Svitavy, Czech Republic. The Svitavy plant will remain part of MWV beyond the transition period. MWV will continue to produce high-quality solid bleached sulfate (SBS) paperboard for global tobacco end markets at its Covington, Virginia, paperboard mill.
About MWV
MeadWestvaco Corporation (NYSE: MWV) is a global packaging company providing innovative solutions to the world’s most admired brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries. The company also produces specialty chemicals for the automotive, energy and infrastructure industries, and maximizes the value of its development land holdings. MWV’s network of 125 facilities and more than 15,000 employees spans North America, South America, Europe and Asia. Learn more at mwv.com.
Forward-looking Statements
Certain statements in this document and elsewhere by management of the company that are neither reported financial results nor other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company, or industry results, to differ materially from those expressed or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to, events or circumstances which affect the ability of MeadWestvaco to realize improvements in operating earnings from the company's ongoing cost reduction initiatives; the ability of MeadWestvaco to close announced and pending transactions; competitive pricing for the company's products; impact from unpredictable costs of energy and raw materials, including wood fiber and other input costs; fluctuations in demand and changes in production capacities; relative growth or decline in the United States and international economies; government policies and regulations, including, but not limited, to those affecting the environment, climate change, tax policies and the tobacco industry; the company's continued ability to reach agreement with its unionized employees on collective bargaining agreements; the company's ability to maximize the value of its development land holdings; adverse results in current or future litigation; currency movements; volatility or deterioration of the capital markets; and other risk factors discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2013, and in other filings made from time to time with the SEC. MeadWestvaco undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised, however, to consult any further disclosures made on related subjects in the company's reports filed with the SEC.
