Richmond, VA (July 1, 2008) – MeadWestvaco Corporation (NYSE: MWV) today announced it has completed the sale of its kraft paper mill in North Charleston, S.C., and related assets to KapStone Paper and Packaging Corporation (NASDAQ: KPPC) for $485 million in cash, subject to post-closing adjustments. The company plans to use a substantial portion of after-tax proceeds to pay down debt. The company expects to report a modest gain upon completion of the sale.
Under the terms of the sale, KapStone acquired MWV’s kraft paper mill in North Charleston, a lumber mill in Summerville, and chip mills located in Elgin, Hampton, Andrews and Kinards, S.C., as well as 100 percent of Cogen South, LLC, the mill’s on-site cogeneration facility. In 2007, the North Charleston mill produced 833,000 tons of saturating kraft, linerboard, and kraft folding carton board. MWV will continue to provide wood fiber for the North Charleston mill through a fiber supply agreement.
The MWV Specialty Chemicals business will continue to operate adjacent to and receive raw materials from the North Charleston mill. In addition, the company’s Community Development and Land Management Group, which manages a diverse portfolio of company landholdings, including the conservation-driven master plan for East Edisto, will continue to operate from the Charleston area.
About MWV
MeadWestvaco Corporation (NYSE: MWV), provides packaging solutions to many of the world’s most-admired brands in the healthcare, personal and beauty care, food, beverage, media and entertainment, and home and garden industries. The company's businesses include Consumer & Office Products, Specialty Chemicals, and the Community Development and Land Management Group, which sustainably manages the company’s land holdings to support its operations, and to provide for conservation, recreation and development opportunities. With 24,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards, and has been named to the Dow Jones Sustainability World Index for the fourth consecutive year. For more information, please visit www.mwv.com.