MeadWestvaco looks at expansion after buying Saint-Gobain Calmar
The MeadWestvaco Corporation has acquired plastic pump dispenser specialist Saint Gobain Calmar in a $710m cash agreement. The transaction, which is subject to anti-trust approval, is due to come into effect from the end of June and will enable MeadWestvaco to expand its packaging division, which currently comprises paperboard and plastic cartons and boxes. It is also anticipated that Calmar’s strong presence in key markets, such as the US and Europe as well as emerging markets, will complement MeadWestvaco’s expansion plans. The US packaging group has said that Calmar’s management team will remain in place.
“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 the consumer,” said MeadWestvaco chairman and ceo John A Luke Jr. “Calmar provides us with an opportunity to expand in our key current markets of pharmaceuticals, personal care and cosmetics and fragrance, while giving us access to exciting new growth opportunities.”
Calmar’s revenue in 2005 has been put at approximately $420m with an EBITDA of $81m. MeadWestvaco does not expect the acquisition to affect earnings in 2006. Calmar was acquired by the Saint-Gobain Group in 1998 and has approximately 2700 employees.
