Sealed Air Bain Capital to acquire Diversey Care
Diversey Care and the related food hygiene business combined had net sales of about $2.6 bn. in 2016.
New Diversey will be a hygiene and cleaning systems company that integrates chemicals, floor care machines, tools and equipment. The company will offer a range of technology-based value-added services, food safety services, and water and energy management.
Charlotte-based Sealed Air acquired Diversey in 2011, as part of a transaction that was valued at $4.3 bn. Sealed Air plans to use the proceeds of the sale to Bain Capital to repay debt and maintain its net leverage in the ratio of 3.5 to 4.0 times, repurchase shares to minimize earnings dilution, and fund core growth initiatives, including potential complementary acquisitions to its Food Care and Product Care divisions.
The companies expect the transaction to close in the second half of the year. Sealed Air will report the operations of New Diversey as discontinued operations beginning in the first quarter of 2017. Sealed Air tentatively expects to report first-quarter results on 9 May.