ACCO Brands Completes MeadWestvaco Merger
ACCO Brands Corporation completed the merger with MeadWestvaco's Consumer & Office Products business. The transaction brings popular brands such as Mead, Five Star, Trapper Keeper, AT-A-GLANCE, Cambridge, Day Runner, Hilroy, Tilibra and Grafon's into ACCO Brands' product portfolio.
"The combination of our businesses creates a powerhouse of complementary brands and products that we will be able to market across all relevant channels, including mass market retail, office super stores, independent and wholesale office products dealers, and e-commerce outlets," said Robert J. Keller, chairman and chief executive officer of ACCO Brands Corporation. "We are also significantly diversifying our global footprint. Our new colleagues from the legacy Mead business bring talent and expertise that will contribute to anticipated future growth, and we warmly welcome them into the ACCO Brands family."
The addition of MeadWestvaco's Consumer & Office Products business increases ACCO Brands' 2011 revenues by more than 50 percent on a pro-forma basis, with approximately 80 percent of sales of the combined businesses coming from category-leading brands. On a pro-forma basis, the combined company's revenue for 2011 was $2.1 billion.
Going forward, the merger is expected to:
"The combination of our businesses creates a powerhouse of complementary brands and products that we will be able to market across all relevant channels, including mass market retail, office super stores, independent and wholesale office products dealers, and e-commerce outlets," said Robert J. Keller, chairman and chief executive officer of ACCO Brands Corporation. "We are also significantly diversifying our global footprint. Our new colleagues from the legacy Mead business bring talent and expertise that will contribute to anticipated future growth, and we warmly welcome them into the ACCO Brands family."
The addition of MeadWestvaco's Consumer & Office Products business increases ACCO Brands' 2011 revenues by more than 50 percent on a pro-forma basis, with approximately 80 percent of sales of the combined businesses coming from category-leading brands. On a pro-forma basis, the combined company's revenue for 2011 was $2.1 billion.
Going forward, the merger is expected to:
- Immediately add to ACCO Brands' earnings per share;
- Yield approximately $20 million of annualized cost synergies;
- Enhance ACCO Brands' gross profit and operating income margins;
- Enable ACCO Brands to re-capitalize its balance sheet and increase its interest coverage ratio, and accelerate balance-sheet deleveraging;
- Significantly enhance cash flow generation;
- Increase scale in the mass merchandise channel, providing greater consumer access and cost leverage;
- Bring greater consumer insight and category management capabilities to the combined entity;
- Provide ACCO Brands with a $180 million sales leadership position in Brazil, and double ACCO Brands' sales volume in Canada; and
- Add important new brands and products in key categories to ACCO Brands' existing portfolio of top-selling brands.