MWV to Acquire India-Based Ruby Macons

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Ruby Macons is the market leader in corrugated packaging materials in India, producing more than 150,000 metric tpy with significant capacity expansion underway. Founded and managed by the Nathani family since 1986, Ruby Macons' revenues were approximately $80 million over the past 12 months with double digit operating margins and strong return on capital. The company has achieved greater than 20% average growth over the past several years and is poised for significant future profitable growth through the expansion plans underway.

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 km north of Mumbai. These assets will remain in full operation and become an important part of MWV's 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 Ashraf Nathani, managing director, who will become vice chairman and president of the business.

"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, 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."

Alibhai Nathani, chairman of Ruby Macons, noted that "after extensive conversations with MWV, through which we came to understand their global leadership, outstanding technical capabilities, and strong long-term commitment, we chose them as the right partner to take Ruby Macons to the next level. Our single-most focus while making this decision was to ensure that the business we've built with passion over the past two decades will be in the right hands to ensure long term sustainability for all of our stakeholders. Our family will continue to be involved in the business, and we are excited about partnering with MWV."

The acquisition of Ruby Macons expands MWV's 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 MWV's Industrial packaging segment. MWV has a broader packaging business in India, led by managing director Gautam Sircar and headquartered in Pune, providing packaging solutions for a variety of consumer goods markets.