MeadWestvaco and its downtown neighbor Dominion have both recently acquired other companies. Photo by Mark Robinson.
Two downtown Richmond heavyweights have both announced acquisition deals.
Packaging giant MeadWestvaco is acquiring the Carolina coated bristols business from International Paper Co. The deal is expected to close by the end of April.
Terms of the transaction were not disclosed.
The Carolina brand is a line of coated paperboard used in offset and digital printing applications such as direct mail, retail signage, brochures, lottery tickets and greeting cards.
The acquisition is expected to expand MWV’s ability to serve commercial and specialty print markets, said Bob Feeser, MWV’s executive vice president.
“We are excited to bring Carolina into our business and enhance our offerings for customers in this important market segment,” Feeser said in a press release.
The release states the two companies have agreed to a plan that is intended to ensure minimal disruption for customers while a transition is completed over the next several months.
The announcement comes three months after MWV announced a deal to combine with Georgia-based packaging company Rock-Tenn Co. in a marriage projected to produce a combined $15.7 billion in annual revenue. The combined company will be the second-largest packaging firm in the country, only after International Paper.
Meanwhile, a limited partnership of Dominion Resources, Dominion Midstream Partners, announced Wednesday it has acquired Dominion Carolina Gas Transmission LLC from the parent power company.
The Delaware limited partnership, which shares Dominion Resources’ headquarters in Richmond, acquired the LLC for approximately $495 million.
It is issuing approximately $200 million of limited partnership units to Dominion Resources and has entered into a two-year note with the power company for the remaining $295 million.
Dominion Resources announced its plans for the deal in December. Dominion Carolina Gas Transmission owns and operates nearly 1,500 miles of interstate natural gas pipeline in South Carolina and Georgia.
The release included comments from Dominion CEO Thomas Farrell, who serves as chairman, president and CEO of both Dominion Resources and Dominion Midstream.
“Today’s asset contribution demonstrates Dominion’s and Dominion Midstream’s ability to execute complementary acquisitions to augment our dropdown strategy to achieve targeted best-in-class distribution growth at Dominion Midstream,” Farrell said in the statement.
The company said the acquisition is expected to be immediately accretive to Dominion Midstream’s distributed cash flow per unit. The transaction is described as supporting the partnership’s intention to grow distributions to unitholders at a compounded annual growth rate of about 22 percent per year through the end of the decade.
Dominion Midstream was formed in 2014 to own, operate and develop Dominion Resources’ natural gas infrastructure assets, such as a preferred equity interest in its Cove Point liquefied natural gas shipping terminal in Maryland.
Locally, the power company began work last summer on a new $80 million systems operation center on Scott Road in Henrico County. The roughly 100,000-square-foot facility is replacing the company’s operation center at Innsbrook.
MeadWestvaco and its downtown neighbor Dominion have both recently acquired other companies. Photo by Mark Robinson.
Two downtown Richmond heavyweights have both announced acquisition deals.
Packaging giant MeadWestvaco is acquiring the Carolina coated bristols business from International Paper Co. The deal is expected to close by the end of April.
Terms of the transaction were not disclosed.
The Carolina brand is a line of coated paperboard used in offset and digital printing applications such as direct mail, retail signage, brochures, lottery tickets and greeting cards.
The acquisition is expected to expand MWV’s ability to serve commercial and specialty print markets, said Bob Feeser, MWV’s executive vice president.
“We are excited to bring Carolina into our business and enhance our offerings for customers in this important market segment,” Feeser said in a press release.
The release states the two companies have agreed to a plan that is intended to ensure minimal disruption for customers while a transition is completed over the next several months.
The announcement comes three months after MWV announced a deal to combine with Georgia-based packaging company Rock-Tenn Co. in a marriage projected to produce a combined $15.7 billion in annual revenue. The combined company will be the second-largest packaging firm in the country, only after International Paper.
Meanwhile, a limited partnership of Dominion Resources, Dominion Midstream Partners, announced Wednesday it has acquired Dominion Carolina Gas Transmission LLC from the parent power company.
The Delaware limited partnership, which shares Dominion Resources’ headquarters in Richmond, acquired the LLC for approximately $495 million.
It is issuing approximately $200 million of limited partnership units to Dominion Resources and has entered into a two-year note with the power company for the remaining $295 million.
Dominion Resources announced its plans for the deal in December. Dominion Carolina Gas Transmission owns and operates nearly 1,500 miles of interstate natural gas pipeline in South Carolina and Georgia.
The release included comments from Dominion CEO Thomas Farrell, who serves as chairman, president and CEO of both Dominion Resources and Dominion Midstream.
“Today’s asset contribution demonstrates Dominion’s and Dominion Midstream’s ability to execute complementary acquisitions to augment our dropdown strategy to achieve targeted best-in-class distribution growth at Dominion Midstream,” Farrell said in the statement.
The company said the acquisition is expected to be immediately accretive to Dominion Midstream’s distributed cash flow per unit. The transaction is described as supporting the partnership’s intention to grow distributions to unitholders at a compounded annual growth rate of about 22 percent per year through the end of the decade.
Dominion Midstream was formed in 2014 to own, operate and develop Dominion Resources’ natural gas infrastructure assets, such as a preferred equity interest in its Cove Point liquefied natural gas shipping terminal in Maryland.
Locally, the power company began work last summer on a new $80 million systems operation center on Scott Road in Henrico County. The roughly 100,000-square-foot facility is replacing the company’s operation center at Innsbrook.