Sealed Air Corporation (SEE) provides a sales and EPS outlook through 2013, soon after announcing its acquisition of privately held Diversey Holdings Inc, a leading solutions provider to the global cleaning and sanitization market, for $4.3 billion. This acquisition will help Sealed Air to foray into the $40 billion chemical cleaning and hygiene industry.
Although the news of the acquisition might be contested by Diversey’s largest stockholder, Davis Selected Advisers LP, which holds a 26.8% stake in the company, Sealed Air is committed to growing sales to $9 million in 2013, on a proforma basis.
Sealed Air reported FY10 revenue of $4.5 billion, which could have risen to $7.6 billion, taking the deal into consideration. Sealed Air further expects adjusted earnings to go up to $4.62 per share in 2013 from $3.35 per share in FY10.
The company looks forward to the numerous opportunities that the acquisition would bring as Sealed Air is all set to extend its presence beyond specialty packaging solutions by gaining access to a $40 billion chemical cleaning and hygiene industry. The transaction is expected to generate approximately $30 million in total cost synergies in the first full year, after completion, and approximately $50 million in the following year.
With this combination, Sealed Air will offer customers a broader range of products and services, including Diversey’s SmartDose dosing for cleaners, Optifill sealable prescription fulfillment systems, Taski Swingo XP floor cleaning equipment and Oxivir disinfectants. The combined company will be positioned to meet customers’ growing demand, while simultaneously reducing customers’ costs through increased efficiencies.
Elmwood Park, New Jersey-based Sealed Air Corp. is a major specialty packaging services provider catering to a diverse set of end -markets. The company operates in the United States and in 50 other countries with packaging and performance-based materials and equipment systems under several market leading brands serving food, medical and an array of industrial and consumer applications.
The company reports its operations in four segments: Food Packaging, Protective Packaging, Food Solutions and the Other Category segment. Sealed Air competes with the likes of Bemis Company Inc. (BMS), Sonoco Products Co. (SON) and privately held Printpack Inc. The shares of Sealed Air currently retain a Zacks #3 Rank (short-term Hold rating).
BEMIS (BMS): Free Stock Analysis Report
SEALED AIR CORP (SEE): Free Stock Analysis Report
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