MeadWestvaco shareholders will receive one-third of a share of ACCO stock for each share of MeadWestvaco stock they own. MeadWestvaco shareholders will receive cash for any fractional shares.
The distribution of consumer and office products shares will generally qualify as tax-free to MeadWestvaco shareholders, the company said.
The spin-off and merger are expected to close on April 30 and become effective May 1. Once completed, MeadWestvaco shareholders will collectively own 50.5 percent of ACCO common stock and ACCO shareholders will own the remainder.
Beginning on or about April 24 and continuing through the anticipated closing date of April 30, there will be two markets in MeadWestvaco common stock on the New York Stock Exchange: a “regular way” market and an “ex-distribution” market. Also during this period of two-way trading in MeadWestvaco Corp. common stock, a MeadWestvaco Corp. stockholder can also sell the right to his ACCO Brands Corp. common stock that he will receive following the closing of the merger, the company said.
Officials for both companies said the spin-off — first announced in November 2011 — will let MeadWestvaco focus on its packaging business for food, beverage, health care and other markets while giving ACCO new global and brand reach into countries.