RockTenn Company and MeadWestvaco Corporation (MWV) have announced that they have entered into a definitive agreement to create a leading global provider of consumer and corrugated packaging (NewCo) in a transaction with a combined equity value of $16 billion. The combined company, to be named prior to closing, will have total net sales of $15.7 billion and adjusted EBITDA of $2.9 billion, including the impact of $300 million in estimated annual synergies to be achieved over three years.

Steven C. Voorhees, chief executive officer of RockTenn, will serve as chief executive officer and president of the combined company, and John A. Luke, Jr., chairman and chief executive officer of MWV, will become non-executive chairman of the board of directors.

The combined company will maintain its principal executive offices in Richmond, VA, and will have operating offices in Norcross, GA. The transaction is expected to close in the second calendar quarter of this year.