AGI World combines with Shorewood Packaging to create global specialty packaging solutions leader
Business deal between International Paper and Atlas Holdings LLC is the basis behind creation of AGI-Shorewood.
International Paper and Atlas Holdings have signed a definitive agreement to combine their consumer packaging solutions businesses, pending regulatory approval and other customary closing conditions. As a result of the agreement, Shorewood Packaging and AGI World, two leading global specialty packaging companies, will become AGI-Shorewood, creating one of the largest and most innovative specialty packaging businesses in the world with operations in North America, Europe, Asia, Australia and Latin America.
“For more than a decade, Shorewood Packaging has been an important part of International Paper and has made many contributions to our company, particularly through leadership in innovation and creative services for customers,” says Tom Kadien, senior vice-president of International Paper’s Consumer Packaging and IP Asia businesses. “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.”
“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,” states Andrew Bursky, chairman of Atlas Holdings. “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.”
Once the transaction is complete, the new company will employ nearly 4,000 people and will operate 24 manufacturing facilities around the world. In addition, AGI-Shorewood will be a nimble supplier, strategically focused on its key consumer packaging, media and entertainment, and tobacco packaging markets, which include beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods and tobacco and specialty gravure.
Mike Ukropina, currently president, Shorewood Packaging, will lead the new AGI-Shorewood organization as president and chief executive officer. The remainder of the AGI-Shorewood leadership team will include:
• Mark Caines, currently chief executive officer of AGI North America, to become chief executive officer of AGI-Shorewood North America;
• Tony Garnish, currently chief executive officer of AGI Europe, to become chief executive officer of AGI-Shorewood Europe;
• Lucy Tzou, currently general manage of Shorewood Packaging and IP Foodservice Asia, to become chief executive officer of AGI-Shorewood Asia and Global Gravure;
• Don Eldert, currently chief financial officer of Atlas Material Holding Corporation, to be executive vice-president and chief financial officer of AGI-Shorewood.
“AGI and Shorewood are an excellent fit,” said Ukropina. “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.”
The merging of Shorewood with AGI reflects Atlas’ investment strategy of purchasing and successfully transitioning divisions of larger corporate parents into strong independent companies.
Upon closing of the transaction, Atlas will own 100 per cent of the combined AGI-Shorewood business in the U.S. and International Paper will own a 40 per cent interest in the combined AGI-Shorewood business outside of the U.S. The various regional transactions are expected to close before the end of 2011.
International Paper is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers, industrial and consumer packaging and distribution. Headquartered in Memphis, Tenn., the company employs about 60,000 people in more than 20 countries and serves customers worldwide. Its 2009 net sales were more than $23 billion. For more information visit www.internationalpaper.com.
Shorewood Packaging is a leading value-added provider of high-quality creative, printing and packaging products that help customers enhance their brands in the global marketplace. Shorewood serves a diverse range of customers in the home entertainment and tobacco industries, in addition to healthcare, cosmetics & fragrances, candy & confectionary, beverage, distilled spirits, sporting goods and private label customers in the consumer products industry. The company has multiple manufacturing facilities in North America, Europe and Asia. To learn more about Shorewood visit www.shorewoodpackaging.com.
Atlas Holdings LLC
Atlas Holdings is an industrial holding company and investment firm with operations in the U.S., Canada, and Europe. Its businesses are engaged in a broad spectrum of industries, including food and agriculture, building materials and wood products, pulp and paper, packaging, distribution, energy, capital equipment, and industrial business services. Atlas specializes in the purchase of middle-market companies, via carve-outs and corporate divestitures, in industries it understands well by virtue of historic involvement and experience. Atlas works closely with its operating partners and management teams to build strong standalone companies that can sustain long-term success. Visit www.atlasholdingsllc.com to learn more.
AGI World is a specialized global packaging company that makes innovative packaging products for the entertainment, music, video game, technology and telecom, and personal care industries. AGI employs about 1,500 employees with 11 manufacturing facilities and six creative services offices in the U.S., U.K., Austria, France, Ireland, Germany, Poland, The Netherlands and Australia. Visit www.agi-world.com for more details.