Meadwestvaco (NYSE:MWV) said Friday that it is selling its global media and entertainment packaging business to Atlas Holdings for $68 million in cash.
The transaction, expected to close on Sept. 30, will result in a pre-tax loss for MWV of about $125 million, to be reported in its third quarter earnings.
“This transaction allows us to further sharpen our focus on the growing global consumer packaging markets we have selected and dedicate our resources to ensure we are leveraging our capabilities in these key markets,” said MWV CEO John A. Luke, Jr.
The media business being sold, with some 1,450 employees, specializes in packaging for DVDs, music and video games.
It operates under names such as AGI Media, AGI Amaray and AGI Polymatrix in the US, United Kingdom, Austria, France, Ireland, Germany, Poland, The Netherlands and Australia.
Atlas owns a family of companies that span multiple industries, including consumer packaging, and has worked within the packaging sector for more than a decade.
“We are confident that under Atlas’ ownership, the media and entertainment business will continue to have a market-leading position in this sector,” said Luke.