PITTSBURGH—Matthews International has signed an agreement to acquire Schawk in a deal that will merge two leading providers to the packaging industry.

Schawk, a brand development company whose offerings include HD flexo plates, prepress, print quality management and artwork production, reported sales of US$445 million for 2013 and has approximately 3,600 employees in more than 20 countries.

The resulting synergy is expected to achieve $35 million to $45 million in annual cost savings. Based on recent figures for Matthews' stock, the transaction's total enterprise value is approximated at $577 million.

Matthews International has been in business for over 100 years; Schawk was founded in 1953. The transaction is expected to close in the quarter ending September 30, 2014, and is subject to closing conditions including approval by shareholders.

"[Schawk]'s geographic and product positioning is uniquely complementary to Matthews," said Joseph C. Bartolacci, president and chief executive officer of Matthews, in a statement.

"With their North American presence and Asian competencies, combined with our European strength and merchandising capabilities, this alliance will create compelling new opportunities for our clients and employees in all of the markets we serve."