AGI's private equity-owner Atlas Holdings announced on Monday (22 August) that it had signed a definitive agreement with Shorewood owner International Paper to combine the two consumer packaging businesses.
On completion of the deal Atlas will own 100% of the combined AGI-Shorewood in the US and 60% of its overseas business. International Paper will own the remaining 40% interest in AGI-Shorewood outside the US.
Andrew Bursky, chairman of Atlas Holdings, said: "We are excited about this combination, bringing together two businesses with great legacies and creating a new global leader with unparalleled capability to serve the world’s premier consumer product, media and entertainment and tobacco companies.
"We are committed to building the new AGI-Shorewood around the needs of our customers, providing innovation, efficiency and exceptional service through an unrivaled network of global packaging and creative service facilities."
Tom Kadien, senior vice president of International Paper’s Consumer Packaging and IP Asia businesses said: "By merging Shorewood with AGI, our employees and our customers will have many more options and opportunities in the future, and we will continue to be a strong partner in those efforts."
Shorewood Packaging president Mike Ukropina, who will lead the combined business as president and chief executive, added: "AGI and Shorewood are an excellent fit. Both companies are made up of extremely talented people who are unrivaled in customer focus and also share a deep commitment to safety, a drive for continuous improvement and a belief in helping people grow and succeed. I’m looking forward to the opportunities that lie ahead."
AGI North America chief executive Mark Caines and AGI Europe chief executive Tony Garnish will retain the same roles as head of AGI-Shorewood's US and European businesses respectively.
Meanwhile, the firm's Asian and Global Gravure business will be headed up by Shorewood Packaging and International Paper Foodservice Asia general manager Lucy Tzou.
Don Eldert, currently chief financial officer at Atlas Material Holding Corporation, will become executive vice president and chief financial officer of AGI-Shorewood.
AGI-Shorewood will employ nearly 4,000 staff across 24 manufacturing sites in the US, UK, Austria, France, Ireland, Germany, Poland, the Netherlands, Asia and Australia.
It will focus on its core markets in consumer, media and entertainment, and tobacco packaging, including beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionery and specialty foods and specialty gravure.
The merging of Shorewood with AGI reflects Atlas’ investment strategy of purchasing and successfully transitioning divisions of larger corporate parents into strong independent companies.
