January 28, 2015 By Pulp & Paper Canada
Rock-Tenn Company and MeadWestvaco Corp. have entered into a definitive combination agreement to create a leading global provider of consumer and corrugated packaging. The combined company, to be named prior to closing, will have combined net…
Rock-Tenn Company and MeadWestvaco Corp. have entered into a definitive combination agreement to create a leading global provider of consumer and corrugated packaging. The combined company, to be named prior to closing, will have combined net sales of US$15.7 billion and adjusted EBITDA of US$2.9 billion.
Steven C. Voorhees, chief executive officer of RockTenn, said, “This transaction brings together two highly complementary organizations to create a new, more powerful company with leadership positions in the global consumer and corrugated packaging markets. This is a terrific opportunity for shareholders, employees and customers of both companies, all of whom stand to benefit enormously from the combination.”
RockTenn owns one paper mill in Canada, at La Tuque, Que.
Voorhees said the two companies are an exceptional cultural fit, sharing a commitment to exceeding customer expectations and a focus on developing innovative packaging solutions.
Planning for the integration of the two companies has already started, and the partners expect to realize cost synergies.
Voorhees will serve as chief executive officer and president of the combined company. The combined company will maintain its principal executive offices in Richmond, Va., and will have operating offices in Norcross, Ga.
The transaction requires the approval of shareholders of both MWV and RockTenn and is subject to receipt of certain regulatory approvals and other customary closing conditions. Closing of the transaction is expected in the second quarter of 2015.
Print this page