MeadWestvaco (MWV) has signed an agreement to acquire Indian producer of corrugated packaging materials Ruby Macons, for an undisclosed sum.
MWV chairman and chief executive officer John Luke Jr said the addition of Ruby Macons strengthens the company's ability to grow profitably in the Asian country by leveraging its capabilities in packaging materials together with its global innovation capabilities.
"The acquisition of Ruby Macons extends our participation in India, strengthening our presence in a market that we have targeted for profitable growth," Luke said.
According to MWV, the acquisition will expand the company's presence in industrial packaging in India, which includes a manufacturing facility in Pune.
The facility manufactures rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals.
MWV will offer a broad range of packaging solutions that address market and consumer needs in India, through Ruby Macons and its converting customers, besides its Pune plant.
Ruby Macons offices and manufacturing facilities, including its two mills containing three paper machines located in and around the industrial city of Vapi, Gujarat, will be fully operational and become a vital part of MWV's industrial packaging and global manufacturing platform.
The combined business, on completion of the deal, will report through MWV's industrial packaging segment.
MWV, which has built an industrial packaging business in Brazil, plans to leverage the experience to serve the rapidly-evolving retail sector and fast-growing middle class in India, with the latest acquisition.
Ruby Macons produces more than 150,000t annually and has significant capacity expansion plans underway.
The company, which reported revenues of about $80m over the last one year, has achieved over 20% average growth over the last several years.