Sealed Air Corporation, maker of Bubble Wrap and Jiffy bags, and, global cleaning and sanitization product giant, recently announced that they have entered into a definitive agreement under which Sealed Air will acquire Diversey, in a transaction valued at $4.3 billion. The transaction will be completed in 2011 and it is expected to be accretive to earnings in the first full year following completion.
“This transaction represents a strategic growth opportunity that leverages Sealed Air’s core competencies and positions our company to further capitalise on the megatrends that drive both businesses,” says William V. Hickey, President and Chief Executive Officer of Sealed Air. “With Diversey, we will expand our footprint beyond specialty packaging solutions by gaining entry into a $40+ billion chemical cleaning and hygiene industry that has attractive fundamentals and is already in our value chain. This combination is also financially compelling, and we expect it to deliver enhanced earnings per share and free cash flow generation, creating meaningful value for our shareholders.”
Sealed Air operates in 52 countries and is a leading provider of food and industrial system solutions which help ensure that food retains its freshness, products arrive undamaged and transit efficiencies are maximised to reduce energy and waste. The company is focused on pioneering a differentiated, proprietary range of offerings in material science, automation technology and service-based solutions. Diversey is a leading global provider of commercial cleaning, sanitation and hygiene solutions. The company serves customers in the building management, lodging, food service, retail, health care and food and beverage sectors. Diversey operates in more than 60 countries and is a market leader in Europe, Asia Pacific, Turkey, Brazil, Africa and other high growth developing regions.
Sealed Air plans to maintain Diversey’s America’s business unit and R&D functions in Racine, Wisconsin, and to continue Diversey’s support and involvement in the Racine community.