Packaging solution provider MeadWestvaco Corp. (MWV) recently agreed to sell its Specialty Papers business in South Lee, Massachusetts, to Onyx Specialty Papers Inc.
The sale is expected to close in early December. The company said that it will fully exit the Specialty Papers business upon the completion of this sale. MeadWestvaco did not disclose the financial terms of the deal.
The Specialty Papers business produces decorative laminate products for commercial and residential markets, transmission products for the automotive industry as well as other industrial specialty papers for various markets.
Onyx Specialty Papers is a new business formed by the South Lee plant’s current general manager, Patricia Begrowicz, and Chris Mathews, vice president of Sales and Business Development.
This divestment dovetails with the company’s growth plans. Following a strategic review of each of its businesses including markets, products, customers and facilities, MeadWestvaco has decided to exit unprofitable businesses and product lines, and extend its position in the growth markets, such as beverage, health care, beauty & personal care, and home & garden markets through acquisitions, product mix improvements and new product introductions. Furthermore, the company is increasing its investments in developing countries in order to tap the growth potential in these markets.
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