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MWV to spin off specialty chemicals business

MeadWestvacos board of directors has approved a plan to fully separate its Specialty Chemicals business from the rest of the company.
The separation is expected to be executed by means of a tax-free spinoff of the Specialty Chemicals business to MWV shareholders, resulting in two independent, publicly traded companies.

The spinoff is expected to be completed by the end of 2015.

MWV said that it remains open to other value-creating alternatives for the Specialty Chemicals business throughout this process.

– The separation of Specialty Chemicals will establish two strong companies that are better positioned to compete and profitably grow in their targeted markets, commented John A Luke Jr, chairman and CEO of MWV.

The company is also planning to a “comprehensive organization redesign” to boost its packaging business.
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