RockTenn, a large Norcross-based paper and packaging manufacturer, is merging with another big industry player, MeadWestvaco Corp. based in Richmond, in a deal with a combined stock value of $16 billion, the companies announced today.
The merged packaging giant, which will have net sales of $15.7 billion, is expecting to achieve $300 million in estimated “annual synergies” over three years, the companies said in a news release.
RockTenn has 27,000 employees and MeadWestvaco has 15,000 workers.
The deal has been unanimously approved by the boards of both companies and is subject to shareholder approval.
“This transaction brings together two highly complementary organizations to create a new, more powerful company with leadership positions in the global consumer and corrugated packaging markets,” said RockTenn CEO Steven Voorhees. He will be CEO of the new company, which will have its main executive offices in Richmond and operating offices in Norcross.
MeadWestvaco stockholders will receive 0.78 shares of the combined company for each share they own. RockTenn shareholders will be allowed to choose either 1 share of the combined company or a specific cash amount for each RockTenn Co. share held.
The deal is expected to close in the second quarter.
