PRINT THIS PAGE

US Cerberus buys MeadWestvaco's papers assets for $2.3bn

Stamford-headquartered MeadWestvaco Corporation has sold its papers business and associated assets for $2.3bn to a company controlled by New York-based private equity firm Cerberus Capital Management.

MeadWestvaco's Papers business consists primarily of mills located in Ohio, Michigan, Maryland, Maine and Kentucky, which have a combined annual capacity of approximately 2.05 million tons of coated paper; 290,000 tons of carbonless paper and 110,000 tons of uncoated paper.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second quarter of 2005.

Also included in the sale are approximately 900,000 acres of forestlands.

MeadWestvaco expects the transaction to result in after-tax net proceeds of approximately $2.1bn at closing, which it will use to improve its overall capital structure.

Cerberus and its affiliated entities manage funds and accounts with capital in excess of $14bn.

Copyright © 2005 AltAssets