MeadWestvaco's board approves US$1/share special dividend and US$394M of share repurchases financed from recent sale of its US forestlands to Plum Creek Timber
January 27, 2014
– MeadWestvaco Corporation (NYSE: MWV), a global leader in packaging and packaging solutions, today announced that its Board of Directors has approved the final form of shareholder returns for the remaining $569 million of proceeds from the company’s sale of all of its U.S. forestlands to Plum Creek Timber Company, Inc., which was completed on December 6, 2013.
The Board approved the following:
Approximately $175 million ($1.00 per share) in the form of a special dividend to be paid with the March regular quarterly dividend declared today (see separate release).
$394 million of share repurchases that the company expects will be comprised of $300 million under an accelerated share repurchase agreement, and $94 million pursuant to open market repurchases, which are both expected to be largely completed by the end of the second quarter of 2014.
Combined with the company’s previous open market repurchase of approximately 3.75 million shares for $131 million ($34.93 per share), total returns to shareholders from the forestland asset sale are expected to be $700 million.
“The sale of the U.S. forestland assets to Plum Creek represents yet another milestone in maximizing value for shareholders with a timely and creative transaction,” said John A. Luke, Jr., chairman and chief executive officer, MWV. “Not only are we returning substantial value to shareholders, but we also anticipate further upside for shareholders as we continue to execute the development strategies we have in place on the company’s remaining highest value acreage in the Charleston area.”
MeadWestvaco Corporation (NYSE:MWV) is a global packaging company providing innovative solutions to the world’s most admired brands in the healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries. The company also produces specialty chemicals for the automotive, energy, and infrastructure industries and maximizes the value of its development land holdings. MWV’s network of 125 facilities and 16,000 employees spans North America, South America, Europe and Asia. The company has been recognized for financial performance and environmental stewardship with a place on the Dow Jones Sustainability World Index every year since 2004. Learn more at www.mwv.com.
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