John Luke, Chairman and CEO, MeadWestvaco Corporation
Thanks, Mark. Let me summarize by saying the spin-off of Specialty Chemicals will establish two strong companies, each with great strategies and very exciting opportunities for profitable growth. This action reinforces our strong commitment to creating value for our shareholders and we are clearly excited about the future for both businesses.
With this, we now like to turn to you for your questions and as we transition, I will just remind you that we have roughly 15 minutes or so left in the call and we will look to get as many of your questions answered as we can, but I would also note that we will have ample time for discussion with you over the next couple of weeks, and certainly, we have our Earnings Call on the 28th of January where we, I’m sure, will have more fulsome discussion of this topic as well.
Question and Answer Session:
Operator
(Operator Instruction) First, we go to Mark Connelly with CLSA, please go ahead.
Mark Connelly, CLSA
I will be quick, two questions. First, you have talked over the years about having dividend growth aspirations for the packaging side of your business. Is that still your focus or do you think we are going to be looking at more of a balance of buybacks and other stuff? The second question is, does this materially change your predilection to doing M&A on the packaging side?
John Luke, Chairman and CEO, MeadWestvaco Corporation
Let me comment and I will turn to Bob and Mark to comment as well, Mark. We have, as you gathered, at a very high level and we will obviously get more into it as we move forward, great aspirations for a profitable growth in the packaging business and we would expect it overtime that would include first and foremost, organic growth of the sort that Bob Beckler outlined, but clearly, there will be opportunities as we identify profitable potential around the world, consideration of inorganic opportunities as well. As we proceed with the achieving of those profitable growth objectives, the opportunity for return of capital in a variety of forums to shareholders will be very much as before. Mark?
Mark Rajkowski, SVP, Chief Financial Officer, MeadWestvaco Corporation
Yes, John, I would add that relevant to the dividend, that is our objective and that is a function of increasing profitability, increasing free cash flow with the objectives and the focus that we have announced today that certainly are expectation. We will be able to meaningfully grow the business, expand our margins, increase our cash flows and that will enable us to continue to increase our returns to our shareholders with strong dividend.
Mark Connelly, CLSA
That is great. Thank you. I am happy to hear that you are sticking with the strategy.
John Luke, Chairman and CEO, MeadWestvaco Corporation
Thanks, Mark.
Operator
Our next question from Ghansham Panjabi with Robert W. Baird. Please go ahead.
Ghansham Panjabi, Robert W. Baird& Co.
Hey guys, good morning and Happy New Year. Just curious, why only two times net at EBITDA for Specialty Chems? It looks like the business puts up a fair amount of cash flow, so why not a higher leverage profile? From your perspective as a business, do you think it could not support a higher leverage profile?
Robert Beckler, EVP and President, Packaging, MeadWestvaco Corporation
I think Ghansham, I mean, it is a fair question. We are really excited by the opportunities that the business has to grow. As we mentioned on the call, we think we certainly have an expectation that over the next five to seven years, we can double the size of that business and that is going to require capital for growth and we do not want to constrain those opportunities. Ultimately, that will be the decision of the board, but we think as we look out, the opportunities are fantastic for that business. It is important that they do not get over burdened by death.
Ghansham Panjabi, Robert W. Baird & Co.
Okay, I will turn it over. Thanks.
John Luke, Chairman and CEO, MeadWestvaco Corporation
Thanks, Ghansham.
