MeadWestvaco selling off mills, forest land for $2.3B to focus on Packagin

[Judi Lynn]

MeadWestvaco selling off mills, forest land for $2.3B to focus on Packaging


Canadian Press
Tuesday, January 18, 2005

STAMFORD, Conn. (AP) -MeadWestvaco Corp. has agreed to sell its papers business, including several mills and forest land, for $2.3 billion US to a private buyout group so it can focus on its packaging business.

The buyer in the deal announced Tuesday is a new company controlled by Cerberus Capital Management LP, a private, New York-based investment firm that is also a major shareholder in Air Canada (TSX:ACE.B). The deal requires regulatory approvals and financing.

"This transaction marks an important strategic step for MeadWestvaco," said John Luke, chairman and chief executive. "It makes us a more focused company, able to deliver stronger, more consistent financial returns."

Under the terms of the agreement, the new company will acquire MeadWestvaco's papers business, which consists primarily of mills located in Chillicothe, Ohio; Escanaba, Mich.; Luke, Md.; Rumford, Me.; and Wickliffe, Ky.
(snip/...)

http://www.canada.com/businesscentre/story.html?id=2e6b49aa-c8bb-4088-b402-dba1f9c1301f

[quaoar]

1. So

when do the new owners start clear-cutting those forests to pay off the bonds they floated to buy this operation?

[MaineDem]

2. Rumford, ME!

Wow, I've heard of them selling off land but not a mill before. This is big news.