Sealed Air in talks to sell cleaning and chemicals systems division Diversey for $3-$4 bn
14 March 2017
US packaging company Sealed Air Corp is in exclusive talks to sell its cleaning and chemicals systems division, Diversey Care, to private equity firm Bain Capital for between $3 billion and $4 billion, Reuters yesterday reported, citing people familiar with the matter.
Sealed Air is likely to announce the deal before the end of March, and if it fails t go through, the company would go back to its previous plan to spin off Diversey, the report said.
A successful deal would allow Sealed Air, which has a market cap of $8.7 billion, to focus on its higher-margin food, product and medical packaging operations by shedding a hygiene and cleaning solutions division that it no longer sees as core to its business, the report added.
In October last, Sealed Air announced that it plans to spin off Diversey, as well as its food hygiene and cleaning businesses to shareholders in the second half of 2017.
North Carolina-based Sealed Air had Diversey in 2011 for $4.3 billion in cash and stock.
Earlier the New York Post had reported that German consumer giant Henkel is in talks to buy Diversey for over $3 billion.
Diversey, formerly JohnsonDiversey, Inc, is a provider of cleaning and hygiene products to lodging, food service, retail, food and beverage companies, as well as building service contractors worldwide.
It also makes floor cleaning machines, detergents and stain removers for hotels and hospitals.
Sealed Air portfolio of brands, include Cryovac brand food packaging solutions, Bubble Wrap brand cushioning and Diversey cleaning and hygiene solutions,
It has around 23,000 employees who customers in 169 countries.