Sealed Air Acquires Diversey for $4.3 billion
By Canadian Packaging Staff
General acquisition Diversey Sealed Air Corporation ZCL Composites Inc.Deal creates a global leader in sustainable solutions that provide hygiene, protection, food safety and security.
ELMWOOD PARK, NJ and STURTEVANT, WI – On June 1, 2011, Sealed Air Corporation and Diversey Holdings, Inc. announced a definitive agreement whereby Sealed Air will acquire Diversey, a leading solutions provider to the global cleaning and sanitization market, in a transaction valued at US$4.3 billion.
The transaction is expected to be completed in 2011 and 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 capitalize 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 US$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 and Diversey have shared values, overlapping customers and end markets, and a common vision. By harnessing the strengths and sales capabilities of both companies, we will be able to bolster our solutions and services competencies and position Sealed Air for continued market leadership. We look forward to welcoming Diversey’s talented employees to the Sealed Air team.”
Diversey president and chief executive officer, Edward F. Lonergan says: “We are excited about the opportunities we have to grow with Sealed Air through increased scale and expanded reach. We share a culture of innovation and a global vision for our business. Like Sealed Air, Diversey is committed to sustainable solutions, both in terms of our business and in terms of helping our customers protect human health while reducing waste generation and consumption of natural resources. I am confident that this is a winning combination for our employees and customers around the world.”
Benefits of the Transaction:
Creates a Global Leader in Sustainable Solutions that Provide Hygiene, Protection, Food Safety and Security;
Extends Geographic Footprint and Enhances Growth Opportunities in Developing Regions;
Expands Revenue Opportunity with Overlapping Customer Base;
Broadens Solutions Offering;
Combines Complementary Business Models;
Drives Robust Research and Development Efforts;
Delivers Compelling Financial Benefits.
The transaction is expected to be accretive to earnings per share and free cash flow in the first full year following completion. The transaction is expected to generate approximately $50 million in total cost synergies in the second full year after close, with approximately $30 million generated in year one.
Leadership and Community Commitments
William V. Hickey will continue as president and chief executive officer of Sealed Air. When the transaction closes, Edward F. Lonergan, president and chief executive officer of Diversey, and his team will join Sealed Air, with Lonergan continuing to lead the Diversey business.
Sealed Air plans to maintain Diversey’s Americas business unit and R&D functions in Racine, Wisconsin and to continue Diversey’s support and involvement in the Racine community.
About Sealed Air
For over 50 years, Sealed Air has been a leading global innovator and manufacturer of a wide range of packaging and performance-based materials and equipment systems that now serve an array of food, industrial, medical, and consumer applications. Operating in 52 countries, Sealed Air’s international reach generated revenue of approximately $4.5 billion in 2010. With widely recognized brands such as Bubble Wrap brand cushioning, Jiffy protective mailers, Instapak foam-in-place systems and Cryovac packaging technology, Sealed Air continues to identify new trends, foster new markets, and deliver innovative solutions to its customers. For more information about Sealed Air, visit www.sealedair.com.
About Diversey
Diversey, Inc. is committed to a cleaner, healthier future. Its products, systems and expertise make food, drink and facilities safer and more hygienic for consumers and for building occupants. With sales into more than 175 countries, 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 is headquartered in Sturtevant, Wisconsin. To learn more, visit www.diversey.com.
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