International Paper and Atlas Holdings signed a definitive agreement to combine their consumer packaging solutions businesses. 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 specialty packaging businesses in the world with operations in North America, Europe, Asia, Australia and Latin America.

Once the transaction is complete, the new company will employ nearly 4,000 people and will operate 24 manufacturing facilities around the world. AGI-Shorewood will be a supplier to beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, and other markets. Current Shorewood Packaging President, Mike Ukropina will lead the AGI-Shorewood organization as president and CEO.

Upon closing of the transaction, Atlas will own 100 percent of the combined AGI-Shorewood business in the U.S. and International Paper will own a 40 percent interest in the combined AGI-Shorewood business outside of the U.S. The deal is expected to close before the end of 2011.