MWV to Spin-off Its Specialty Chemicals Business
Jan. 8, 2015 - MeadWestvaco (MWV) announced today that its board of directors has approved a plan to fully separate its Specialty Chemicals business from the rest of the company. The separation is expected to be executed by means of a tax-free spinoff of the Specialty Chemicals business to MWV shareholders, resulting in two independent, publicly traded companies.
The spinoff is expected to be completed by the end of 2015.
MWV said that it remains open to other value-creating alternatives for the Specialty Chemicals business throughout this process.
"Following a thorough strategic review process, MWV's board and leadership team determined that a tax-free spinoff of Specialty Chemicals presents the best opportunity to create the greatest value for our shareholders," said John A. Luke Jr., chairman and CEO of MWV. "The separation of Specialty Chemicals will establish two strong companies that are better positioned to compete and profitably grow in their targeted markets."
MWV expects to receive cash from the spinoff that will be used primarily to pay down debt to maintain MWV’s investment grade credit rating. MWV expects to continue to pay a strong dividend, with the final rate to be determined post-separation. The company also will continue to look for opportunities to return capital to shareholders.
MeadWestvaco Corporation (MWV) is a global packaging company. To learn more, please visit: www.mwv.com.
SOURCE: MeadWestvaco Corporation