PANAMA CITY — RockTenn, the company that operates the Panama City paper mill, grew substantially Monday as officials announced a merger with competing company MeadWestvaco, creating a packaging conglomerate with an equity value of nearly $16 billion.
While company executives praised the deal as a “logical step,” with cost savings expected at $300 million annually, it remains unclear how the transaction will affect operations at the company’s locations worldwide.
Norcross, Ga.-based RockTenn purchased the Panama City mill out of bankruptcy in 2011. The facility has been in operation under various owners for more than 80 years and is one of the area’s largest employers.
Robin Keegan, director of corporate communications for RockTenn, said that while integration planning is a top priority, it is still too soon to know or discuss the impact on specific facilities.
“We understand that’s a question on everyone’s mind, including in Panama City,” Keegan said. “With the combination of MWV and RockTenn, we’re creating the leading global provider of consumer and corrugated packaging with the complementary strengths and combined scale to execute on our market-focused strategy. Integration activities will begin immediately, and leadership of both companies will work together to assess our strong, global operational platform.”
Keegan added that the combined company is expected to grow significantly, which would provide opportunities for career growth and advancement.
Based in Richmond, Va., MeadWestvaco specializes in manufacturing materials used in thin paper cartons, while RockTenn specializes in corrugated materials. The companies’ merger was approved by the boards of each company but still requires approval from shareholders and antitrust regulators.
