Sealed Air Corp. and Diversey Holdings Inc. have entered into a definitive agreement under which Sealed Air will acquire Diversey, a solutions provider to the global cleaning and sanitization market, in a transaction valued at $4.3 billion.
Sealed Air Corp. and Diversey Holdings Inc. have entered into a definitive agreement under which Sealed Air will acquire Diversey, a solutions provider to the global cleaning and sanitization market, in a transaction valued at $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.
Diversey provides cleaning, sanitization, and hygiene solutions to industrial and retail customers in the food and beverage, foodservice, healthcare, and lodging sectors, as well as to building service contractors worldwide. In 2010, Diversey generated net sales of $3.1 billion. Diversey employs more than 10,000 people worldwide and operates in more than 60 countries. Sealed Air is a provider of food and industrial system solutions that help ensure that food retains its freshness, products arrive undamaged, and transit efficiencies are maximized to reduce energy and waste. Sealed Air is focused on pioneering a differentiated, proprietary range of offerings in material science, automation technology, and service-based solutions in order to provide comprehensive solutions to its customers. Sealed Air operates in 52 countries, employs more than 16,000 people and generated net sales of $4.5 billion in 2010.
“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,” said William V. Hickey, President and CEO 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.”
William V. Hickey will continue as President and CEO of Sealed Air. At the close of the transaction, Edward F. Lonergan, President and CEO of Diversey, and his team will join Sealed Air, and Lonergan will continue to lead the Diversey business. Sealed Air plans to maintain Diversey’s Americas business unit and R&D functions in Racine, Wis., and to continue Diversey’s support and involvement in the Racine community.