Abstract: A method and apparatus for forming separated stacks of perforated, zigzag folded sheets from a main stack comprises a feed conveyor adapted to receive the folded sheets and to transmit such sheets on their folded ends to a sheet spreading and cutting station. Two adajcent sheets of the main stack are spread apart at the spreading and cutting station by a divider plate and a separator blade to provide sufficient clearance for a flexible cutter to extend into engagement with the perforation therebetween thus forming a relatively small, separated stack of folded sheets from the main stack. This separated stack is then transferred to a discharge conveyor for further handling.