Shorewood, AGI Merge24 Aug, 2011 By: Chris Tribbey
International Paper and Atlas Holdings agreed Aug. 22 to combine their packaging businesses, merging Shorewood Packaging and AGI World, creating one of the largest specialty disc packaging businesses around.
Once the merger is complete the new AGI-Shorewood will employ close to 4,000 people worldwide, working at 24 manufacturing facilities around the globe.
“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,” said Tom Kadien, SVP of International Paper’s consumer packaging business. “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.”
Financial terms of the merger were not released. The merger is contingent on regulatory approval. On closing Atlas will own 100% of the AGI-Shorewood business in the United States., while International Paper will own a 40% interest in the combined AGI-Shorewood business outside of the U.S.
“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,” said 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.”
Mike Ukropina, current president of Shorewood Packaging, will be CEO and president of the new AGI-Shorewood organization.
“AGI and Shorewood are an excellent fit,” he said. “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.”