MeadWestvaco Agrees to Buy India's Ruby Macons

Oct. 19, 2012 - MeadWestvaco (MWV) today announced a definitive agreement with Mr. Alibhai Nathani and family to purchase Ruby Macons Limited, a market leader in corrugated packaging materials in India.

Terms of the deal were not disclosed.

The addition of Ruby Macons boosts our ability to grow profitably in India. — John Luke, Jr., Chairman and CEO of MWV.

The acquisition of Ruby Macons extends our participation in India, strengthening our presence in a market that we have targeted for profitable growth, said John A. Luke, Jr., Chairman and CEO of MWV.

The Nathani family and the Ruby Macons leadership team have built a very successful business and established a best-in-class operation that boasts advantaged operational and technical leadership, strong brand awareness and reputation among converters and brand owners, a highly efficient capital model and an advantaged geographic location within India in Vapi, Gujarat.

"The addition of Ruby Macons boosts our ability to grow profitably in India by bringing their leading local position and capabilities in packaging materials together with our global expertise and innovation capabilities, Luke said.

"Weve built a significant and highly-profitable industrial packaging business in Brazil over the last 60 years, and we will leverage this experience to serve the rapidly-evolving retail sector and fast-growing middle class in India. Through Ruby Macons and its converting customers, in addition to our own box plant in Pune, MWV will offer a wide range of packaging solutions that address market and consumer needs in India, including innovative solutions similar to those we've developed in Brazil for fresh produce, industrial products and consumer goods markets, Luke concluded.

Ruby Macons produces over 150,000 tons per year of corrugated packaging materials with significant capacity expansion plans underway.

According to MWV, Ruby Macons revenues were approximately $80 million over the last 12 months and the company has achieved greater than 20 percent average growth over the last several years.

Ruby Macons offices and manufacturing facilities, including its two mills containing three paper machines, are located in and around the industrial city of Vapi, Gujarat, 180 kilometers north of Mumbai. MWV said the mills will remain in full operation and become part of MWVs industrial packaging and global manufacturing platform.

All Ruby Macons employees will become MWV India employees and the Ruby Macons management team will remain in place, including Mr. Ashraf Nathani, managing director, Ruby Macons, who will become vice chairman and president of the business.

The acquisition of Ruby Macons expands MWVs presence in industrial packaging in India, which today includes a manufacturing facility in Pune making rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals.

Upon closing, the combined business will report through MWVs Industrial packaging segment.

MWV has a broader packaging business in India — led by managing director Gautam Sircar and headquartered in Pune, India — which produces packaging for a variety of consumer goods markets, including Healthcare, Beauty & Personal Care, Home & Garden, and Beverage. It also markets specialty chemicals for asphalt paving and other markets.

SOURCE: MeadWestvaco Corp.