RockTenn Company and MeadWestvaco Corporation announced on Monday that they have entered into a definitive combination agreement to create a leading global provider of consumer and corrugated packaging in a transaction with a combined equity value of $16 billion.
The combined company will have combined net sales of $15.7 billion and adjusted earnings before interest, taxes, depreciation and amortization of $2.9 billion, including the impact of $300 million in estimated annual synergies to be achieved over three years.
Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, MWV stockholders will receive 0.78 shares of the as-yet unnamed new company for each share of MWV held. RockTenn shareholders will be entitled to elect to receive either (a) 1.00 shares of the new company or (b) cash in an amount equal to the volume weighted average price of RockTenn common stock during a five-day period ending three trading days prior to ...
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