Sealed Air to sell key divisions to equity firm

New Diversey will be a hygiene and cleaning solutions company that integrates chemicals, floor-care machines, tools and equipment, with a wide range of technology-based value-added services, food safety services and water and energy management. New Diversey will employ approximately 8,600 people globally. Diversey Care and the related food hygiene businesses combined generated net sales of approximately $2.6bn in 2016. The sale of New Diversey is expected to close in the second half of 2017, and is subject to regulatory approval. The acquisition includes a formal offer to acquire certain elements of Diversey’s business in France and the Netherlands, which may be accepted following Works Council consultation. ‘Revamped strategy’ Once the transaction has been completed, Sealed Air expects to use the proceeds to repay debt and maintain its net leverage ratio in the range of 3.5 to 4.0 times, repurchase shares to minimise earnings dilution, and fund core growth initiatives, including potential complementary acquisitions to its Food Care and Product Care divisions. “W e are pleased that New Diversey has a strong partner to support future growth initiatives and drive further expansion. Diversey Care and its related hygiene business has built an impressive innovation pipeline that includes the Internet of Clean™, robotics and AHP disinfection technologies, revamped its go-to-market strategy and significantly improved profitability, ” said Jerome A Peribere, president and chief executive officer. “ Sealed Air, a leading provider of food, product and medical packaging solutions, will continue to focus on accelerating profitable growth and generating strong cash flow through end-market opportunities and the global adoption of new products and solutions. Sealed Air’s advanced product portfolio is designed to reduce waste, conserve resources and provide product security, and deliver unique and measurable value to customers and the planet. ” “ Diversey has a long track record of leadership in the hygiene and cleaning solutions market on a global basis,” said Ken Hanau, managing director at Bain Capital Private Equity. “We are excited to partner with the talented team at Diversey to grow across key market verticals and geographies while investing in innovative hygiene solutions. Bain Capital’s integrated global platform and strong growth orientation are well aligned with the strategic vision for Diversey. ”

Sealed Air to sell key divisions to equity firm

Packaging and hygiene solutions provider Sealed Air has entered into a definitive agreement to sell its Diversey Care food hygiene and cleaning businesses from its food care division to private investment firm Bain Capital Private Equity.

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