mwv and rocktenn to merge as 16 billion global packaging giant

rocktenn and meadwestvaco mwv 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, to be named prior to the transaction closing, will have total net sales of 15.7 billion and adjusted ebitda of 2.9 billion, including the impact of 300 million in estimated annual synergies to be achieved over three years.the agreement has been unanimously approved by the directors of both companies. subject to the approval of shareholders of both mwv and rocktenn, and to regulatory approvals and other customary closing conditions, the transaction is expected to close in the second quarter of this year.steven c voorhees, chief executive officer of rocktenn, says &quotthis 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. planning for the integration of these two companies has already started and we expect to expeditiously realise the full value of cost synergies we have identified.&quotjohn a luke, jr, mwv&39s chairman and ceo, adds &quotthis transaction is a logical step that is borne of our strategic progress and financial success, and it offers mwv shareholders both immediate value and the opportunity to participate in significant upside as the new company generates substantial growth from its market focused global strategy.&quotvoorhees will serve as ceo and president of the combined company, and luke will become nonexecutive chairman. the board will be comprised of eight directors from rocktenn and six from mwv. the combined company will maintain its principal executive offices in richmond, virginia., and will have operating offices in norcross, georgia.rocktenn is one of north america&39s leading providers of packaging solutions, and manufacturers of containerboard and paperboard. it has 27,000 employees and locations in the us, canada, mexico, chile and argentina. meadwestvaco is a global packaging company with 125 facilities and 15,000 employees in north and south america, europe and asia.www.rocktenn.com www.mwv.com&nbsp