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(Updates with management in second paragraph.)
Nov. 17 (Bloomberg) -- Acco Brands Corp., the maker of Swingline, Day-Timer and Kensington office supplies, agreed to merge with MeadWestvaco Corp.’s consumer-products business in a deal valued at about $860 million.
MeadWestvaco shareholders will own 50.5 percent of the combined company, which will be managed by Acco’s executives and board, Lincolnshire, Illinois-based Acco said in a statement today. The transaction is expected to close in the first half of 2012, the company said.
The merger will boost Acco’s annual revenue by about 50 percent and give it MeadWestvaco’s Mead, Five Star and Trapper Keeper school and office-supply brands. Richmond, Virginia-based MeadWestvaco sold its envelope business to Cenveo Inc. earlier this year.
MeadWestvaco will first spin off the office supply business, which will then pay the parent company a $460 million dividend in a transaction known as a “Reverse Morris Trust,” the companies said. That business will then merge with Acco.
Acco rose 19 percent to $8.30 at 9:36 a.m. in New York. MeadWestvaco advanced 2.6 percent to $28.59.
--Editors: Kevin Orland, John Lear
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