MeadWestvaco to sell global media packaging business
- September 3, 2010
MeadWestvaco Corp. said Friday that it will sell its global media and entertainment packaging business to Atlas Holdings LLC for $68 million in cash. The deal is expected to be completed by Sept. 30. Atlas Holdings, based in Greenwich, Conn., owns a family of companies that span multiple industries including consumer packaging, steel, pulp and paper.
MeadWestvaco’s media business specializes in packaging for DVDs, music and video games. It employs about 1,450 workers. Included in the sale is the Richmond-based company’s network of media packaging businesses that operate under the names AGI Media, AGI Amaray and AGI Polymatrix. Their principal operations are in the U.S., Europe and Australia.
Timothy Fazio, managing partner of Atlas Holdings, said in a statement, “We are excited about acquiring AGI and welcoming its employees into the Atlas family. The acquisition is very consistent with our investment strategy — the packaging market is a sector we have operated in for more than a decade.”
The transaction will result in a pre-tax loss for MWV of about $125 million, which it will report in the third quarter.