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MeadWestvaco closes on spinoff of unit to Acco

RICHMOND, Va. (AP) -- Packaging company MeadWestvaco Corp. has completed the spinoff of its consumer office products unit to Acco Brands.

Acco gets well-known school and office supply brands like Mead, Five Star, Trapper Keeper, At-A-Glance, and others.

MeadWestvaco, based in Richmond, Va., said Tuesday that its stockholders received 0.33 shares of Acco for each share of MeadWestvaco they owned as of April 24. Shareholders received cash instead of fractional shares.

MeadWestvaco received $433 million in cash on a tax-free basis under the deal .

In November, MeadWestvaco agreed to spin off the consumer and office products division to Acco in a deal worth $860 million. Acco Brands will change its ticker symbol to "ACCO" from "ABD" as part of the transaction.

Acco, based in Lincolnshire, Ill., said the deal will immediately add to its earnings per share and boost revenue. It will also help as the company expands globally.

Shares of MeadWestvaco, based in Richmond, Va., rose 97 cents, or 3.4 percent, to $29.30 in afternoon trading. Over the past year, the stock has traded between $22.75 and $34.51. Acco jumped by 70 cents, or 6.6 percent, to $11.25. The shares hit a new 52-week high of $13.30 earlier in the session.