MeadWestvaco to Sell European Tobacco Folding Carton Business
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MeadWestvaco Corp. (MWV), Richmond, Va., USA, is selling its European-based tobacco folding carton business. MWV this past week reported that it has signed a definitive agreement with Swedish company AR Packaging Group AB. Terms of the deal were not disclosed. The transaction is expected to be completed in the next several months.
MeadWestvaco said that the business has annual revenue of about $190 million. It makes packaging for tobacco, chocolate, and consumer apparel at facilities in Austria, Poland, and Russia with about 680 employees.
The company says it will continue to produce paperboard for global tobacco markets at its Covington, Va., paperboard mill.
Earlier this month, MWV announced plans to spin off its specialty chemicals business into a separate, publicly traded company, and this week announced plans to merge with RockTenn of Norcross, Ga. (see article in Weekly Spotlight section above).
