) has completed the acquisition of AARDEX Group, the leader in
measuring patients' adherence to medications. The financial terms
of the deal were undisclosed.
AARDEX Group is the leader in developing, manufacturing and
marketing of MEMS (Medication Event Monitoring System). The system
helps in measuring, analyzing and facilitating patients' adherence
to prescribed drugs and dosing regimens in clinical trials.
The acquisition was in line with the company's strategy to
fortify its leadership position and gain market share in the
growing end markets. The acquisition will open the door for
MeadWestvaco to foray into the fields of adherence packaging to
establish a wider client base.
The company's portfolio expanded in the complete range of
packaging, data analysis and service solution that help in
addressing the habit of non-adherence to medications among
patients. MeadWestvaco will include MEMS into its current portfolio
of adherence packaging solutions. In addition, AARDEX's expert
employee team will become the employees of MeadWestvaco.
MeadWestvaco has been implementing various policies to
strengthen its position in the global packaging market along with
combating the challenging market conditions. The company decided to
spin-off its Consumer & Office Products segment into a new
entity and merge it with ACCO Brands.
The transaction was valued at $860 million. The
shareholders of MeadWestvaco received 50.5% shares of ACCO Brands
while MeadWestvaco received $433 million in cash, both on a
Per its strategy, MeadWestvaco had earlier completed the
acquisition of Polytop Corporation to further strengthen its
position in global packaging. The company now targets at achieving
average annual growth of 5%-10% by leveraging its strong packaging
However, the company faces severe challenges from the weak
housing and labor markets in the U.S. and financial crisis in
Europe. Lower consumer confidence and soft demand in some of the
end markets are weighing on its margins.
MeadWestvaco faces competition from companies like
). Currently, the stock retains a short-term Zacks #3 Rank (Hold).
We have a long-term Neutral recommendation on MeadWestvaco.
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