Acco to Buy MeadWestvaco Unit

Orlando, FL 11/17/11 (StreetBeat) --Packaging company MeadWestvaco Corp. (NYSE: MWV) said Thursday it is spinning off its office supplies business and combining it with Acco Brands Corp. (NYSE: ABD), one of the world's largest office supply manufacturers.

Richmond, Va.-based MeadWestvaco makes Mead, Five Star and At-A-Glance branded office and school supplies. Lincolnshire, Ill.-based Acco Brands Corp. makes Swingline staplers and Day-Timer planners.

MeadWestvaco values the deal at about $860 million, and says its shareholders will wind up with just over 50 percent of Acco Brands. The combined business will be managed by Acco Brands.

Acco Brands CEO Robert J. Keller says it will expand its presence in other consumer categories and into faster-growing markets.

MeadWestvaco CEO John A. Luke Jr. says the deal will sharpen his company's focus on its packaging business for food, beverage, health care, tobacco and other markets.

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