US: Food packager selling chemical division for over $3 billion

Sealed Air is in exclusive talks to sell its cleaning and chemicals systems division, Diversey Care, to private equity firm Bain Capital for somewhere between $3 billion and $4 billion, people familiar with the matter said on Monday.

The deal could allow Sealed Air 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 essential to its business.

Based in Charlotte, North Carolina, Sealed Air’s portfolio includes the Cryovac food packaging brand and cushioning brand Bubble Wrap.

Diversey’s business comprises floor care machines, tools, chemicals and services for commercial clients such as hotels and hospitals. It has struggled with a strong dollar and a slowdown in some of its end-markets, falling behind Sealed Air’s food care and product care businesses in profitability.

Sealed Air acquired Diversey in 2011 from its controlling shareholders, the Johnson family and private equity firm Clayton, Dubilier & Rice, in a $4.3 billion cash and stock deal.

Full Content: Reuters

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