Atlas completes deal for Shorewood Packaging

Atlas Holdings and International Paper have completed a deal to merge their two consumer packaging businesses, AGI World and Shorewood Packaging, into one global operation, with plans to refresh its presence in China.
 
Atlas Holdings was the parent company of AGI World and agreed a deal to buy Shorewood from International Paper in August 2011. All Shorewood locations now form part of AGI-Shorewood, except its operations in China, which will be closed later this month. At the same time, AGI World's operations in in Guangzhou, China will be expanded to provide the merged company with an enhanced presence in the country.
 
‘To support double-digit growth in Asia, following closing on the Chinese businesses later this month, AGI-Shorewood will make an investment of US$7 million in a significant expansion of our Guangzhou, China plant, including a Heidelberg CX 102 8+L UV lithograph printing press that is also capable of printing with conventional inks and water-based coatings,’ said Lucy Tzou, formerly general manager of Shorewood Packaging and IP Foodservice Asia, but now serving as chief executive officer (CEO) of AGI-Shorewood Global Gravure and Asia.

‘As a leader in delivering packaging solutions in China for more than 15 years, this major investment demonstrates our continued commitment to the needs of Chinese and multinational brands for high-quality, innovative packaging in the golf, tobacco, software, entertainment, electronics, cosmetics and confectionery segments.’

AGI-Shorewood is a specialized global packaging company that makes innovative products for consumer products companies. Key consumer packaging segments it serves include entertainment and media, tobacco, beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods, beverages and specialty gravure.
 
With the transaction and following the closing on Shorewood's Packaging's Chinese businesses later this month, AGI-Shorewood will employ nearly 4,000 people worldwide, operating 24 manufacturing facilities in North America, Europe, Asia, and Latin America. It maintains eight creative services offices in the US, UK, France and Australia. The company also has five plastic injection moulding operations in the US, UK, Germany, and Poland. Atlas owns 100 percent of the combined AGI-Shorewood business in the US and 60 percent of the combined AGI-Shorewood business outside of the US. International Paper owns the remaining shares in the AGI-Shorewood business outside of the US.
 
The merger of AGI with Shorewood is consistent with Atlas Holdings' investment approach of purchasing and transitioning divisions of larger corporate parents into strong independent companies. AGI World itself was acquired from MeadWestvaco in 2010.
 
‘We're pleased to complete this transaction, which is a transformational event for AGI,’ said Atlas Holdings chairman Andrew Bursky. ‘The merger provides AGI with expanded diversification, entry to new and growing end markets, and significant positions in rapidly expanding regions like Asia and Latin America. We are now exceptionally positioned to serve both regional and international consumer packaged goods, entertainment and tobacco companies on a truly global basis.’
 
Mike Ukropina, former president of Shorewood Packaging, has been appointed president and CEO of AGI-Shorewood, and said: ‘We intend to be recognized as the best global specialty packaging business in our markets. AGI and Shorewood bring together great people, unrivaled customer focus and a history of innovation. As AGI-Shorewood, we become a much more capable supplier, providing a breadth of product, service and creative offerings that is unparalleled. This combination of resources and capabilities will bring real value to our key customers on four continents.’
 
Other appointments include: Mark Caines, formerly CEO of AGI North America, as CEO of AGI-Shorewood North America; Tony Garnish, formerly CEO of AGI Europe, as CEO of AGI-Shorewood Europe; and Don Eldert, formerly chief financial officer (CFO) of Atlas Material Holding, as executive vice president and CFO of AGI-Shorewood; and Lucy Tzou.