AGI’s private equity-owner Atlas Holdings announced that regulators have approved its agreement with Shorewood owner International Paper to combine the two consumer packaging businesses.
Under the terms of the deal, which was announced in August, Atlas now owns 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.
Atlas Holdings itself bought AGI a year ago from MeadWestVaco.
‘Entrance to new growing end markets’
Atlas Holdings chairman Andrew Bursky said: “The merger provides AGI with expanded diversification, entrance to new growing end markets, and significant positions in rapidly expanding regions like Asia and Latin America.”
AGI-Shorewood chief executive Mike Ukropina added: “We intend to be recognised as the best global specialty-packaging business in our markets.”
AGI produces packaging for DVDs, music and video games. In 2010, it created the packaging for the record-breaking DVD release of the film Avatar.
$7m investment in Guangzhou plant
To coincide with the merger announcement, Lucy Tzou, chief executive of AGI-Shorewood Global Gravure and Asia, announced that company is to invest $7m (£4.5m) in expanding its plant in Guangzhou, China.
This will include investment in a Heidelberg lithograph printing press that is capable of printing with conventional inks and water-based coatings.
AGI-Shorewood employs nearly 4,000 people worldwide and operates 24 manufacturing facilities in North America, Europe, Asia and Latin America. It also has five plastic injection-moulding operations in the US, UK, Germany and Poland.
Its core markets include consumer, media and entertainment and tobacco packaging, including beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods and specialty gravure.
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