RICHMOND, Va.--(BUSINESS WIRE)--
MeadWestvaco Corporation (NYSE: MWV)
today announced that it has executed an accelerated share repurchase
(“ASR”) agreement with BofA Merrill Lynch and Goldman, Sachs & Co. to
purchase $300 million of MeadWestvaco’s outstanding common stock, with
approximately 7.5 million shares to be received and retired immediately.
The exact number of shares repurchased and retired by the company will
be determined at June 30, 2014.
The $300 million ASR is part of MWV’s previously announced plan to
return $700 million of sale proceeds from the company’s divestiture of
all of its U.S. forestlands to Plum Creek Timber Company, Inc., which
was completed on December 6, 2013. In addition to the ASR, the company
expects to use $94 million to effect open market share repurchases at
the company’s discretion. Repurchases under this program also are
expected to be completed by the end of the second quarter of 2014.
Prior to these actions, MWV repurchased and retired approximately 3.75
million shares of outstanding common stock for $131 million, and
declared a special dividend of $1.00 per share payable March 3, 2014, to
all shareholders of record on February 6, 2014.
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 16,000 employees spans North
America, South America, Europe and Asia. The company has been recognized
for financial performance and environmental stewardship with a place on
the Dow Jones Sustainability World Index every year since 2004. Learn
more at mwv.com.
PR Contact, +1
Jason Thompson, +1 804-444-2556
Source: MeadWestvaco Corporation