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MeadWestvaco to Acquire Global Dispensing and Spraying Systems Manufacturer Saint-Gobain Calmar From Compagnie De Saint-Gobain for $710 Million USD

Posted on: Thursday, 27 April 2006, 06:00 CDT

Acquisition Advances MeadWestvaco's Strategy to Deliver Comprehensive and Premium Packaging Solutions to Consumer Products Companies Worldwide

MeadWestvaco Corporation (NYSE: MWV) today announced that it has signed a definitive agreement with Compagnie de Saint-Gobain (Paris: SGO) to acquire Saint-Gobain Calmar, a leading global manufacturer of high-quality and innovative plastic dispensing and spraying systems, for $710 million in cash. The transaction, which is not contingent on financing, has been approved by the board of directors of MeadWestvaco and is expected to close in the summer of 2006.

Calmar's strong presence in key markets in the U.S. and Europe, as well as emerging markets, complement MeadWestvaco's goal of achieving global leadership in premium packaging and packaging solutions. The company's customized pump and spray packaging solutions are used in a broad range of end uses, including personal care, cosmetic and fragrance, pharmaceutical, lawn and garden, home and fabric, automotive and other industrial applications. Calmar's customers are among the most trusted consumer products companies in the world.

"Calmar is led by a proven management team and the company has a history of superior customer service, unrivaled innovation, strong financial and operating performance, and market leadership," said John A. Luke, Jr., chairman and chief executive officer of MeadWestvaco. "This acquisition gives us solid footing in primary packaging, providing an excellent opportunity for MeadWestvaco to deliver a more comprehensive array of valuable packaging solutions to customers worldwide."

Calmar's revenue over the past 12 months was approximately $420 million with an EBITDA of $81 million. The company's management team will remain in place. MeadWestvaco expects Calmar to have minimal impact on its earnings through 2006 and to be accretive to its earnings beginning in 2007.

"Adding Calmar to our existing packaging platform expands our ability to meet our customers' global packaging needs, particularly in higher-growth emerging markets where companies are seeking a single partner to provide them with innovative and cost-effective solutions," added Mr. Luke. "Calmar provides us with an opportunity to expand in our key current markets of pharmaceutical, personal care, and cosmetics and fragrance, while also giving us access to exciting new growth opportunities in markets such as home and fabric, and lawn and garden sectors. We welcome the dedicated and hard-working employees of Calmar to MeadWestvaco, and are confident that this combination will create more opportunities for our customers, employees and shareholders."

About Saint-Gobain Calmar

Saint-Gobain Calmar, founded in 1946 and a wholly owned business unit of Compagnie de Saint-Gobain since 1998, is a leading global manufacturer of high-quality and innovative plastic dispensing and spraying systems. Calmar is headquartered in Grandview, Missouri; has facilities in North America, Europe, Latin America and Asia; generates sales in 43 countries; and employs approximately 2,700 people worldwide. More information about Calmar is available at www.calmar.com.

About MeadWestvaco

MeadWestvaco is a global packaging company that delivers high-value packaging solutions and products to the world's most recognized companies in the food and beverage, media and entertainment, personal care, cosmetic and healthcare industries. The company also has market-leading positions in its Consumer & Office Products, Specialty Chemicals and Specialty Papers businesses. MeadWestvaco, with operations in more than 29 countries, has been selected for the Dow Jones Sustainability Indexes, and manages all of its forestlands in accordance with internationally recognized forest certification standards. For more information, please visit www.meadwestvaco.com.

Forward-looking Statement

Certain statements in this document and elsewhere by management of the company that are neither reported financial results nor other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of each company, or industry results, to differ materially from those expressed or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to, events or circumstances which affect the ability of MeadWestvaco to realize improvements in operating earnings expected from the company's general and administrative cost reduction initiative; competitive pricing for the company's products; changes in raw materials pricing; energy and other costs; fluctuations in demand and changes in production capacities; changes to economic growth in the United States and international economies; government policies and regulations, including, but not limited to those affecting the environment and the tobacco industry; adverse results in current or future litigation, currency movements and other risk factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2005, and in other filings made from time to time with the SEC. MeadWestvaco undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised, however, to consult any further disclosures made on related subjects in the company's reports filed with the SEC.

Source: Business Wire

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