MeadWestvaco Corporation, a global leader in packaging and packaging solutions, announced it has signed a definitive agreement to sell its European-based tobacco folding carton business to AR Packaging Group AB, a maker of paperboard cartons, flexible packaging, and trays based in Lund, Sweden. The business has annual revenue of approximately $190 million (€146 million), which is included in MWV’s Food & Beverage segment. Terms of the agreement were not disclosed, and the transaction is expected to be completed in the next several months.
“MWV has long been—and remains—committed to our customers in the global tobacco market,” said Joe McNamara, president of MWV’s Tobacco business. “This transaction gives us the opportunity to further focus our participation on our leadership position in high-quality paperboard for tobacco and other premium packaging markets around the world. Our strong teams and facilities in the folding carton space will flourish as part of AR Packaging, and MWV will continue to serve our global customers as the market for high-quality paperboard grows in many regions.”
