MeadWestvaco Executes $300 Million Accelerated Share Repurchase
RICHMOND, Va. -- February 6, 2014
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, +1 804-444-6397
Jason Thompson, +1 804-444-2556
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