US – US packaging company, Sealed Air (SEE) has signed a definitive agreement to acquire, the maker of bag-in-box sustainable fluids and liquids packaging and dispensing products for US$1.15 billion.
The packaging company said the acquisition is “highly complementary” to its Cryovac Fluids & Liquids business, which is the fastest-growing area of Sealed Air.
Fluids & Liquids flexible packaging solutions are a US$7 billion addressable potential revenue opportunity with an attractive projected annual growth rate of approximately 6%.
The company expects cost synergies of US$30 million a year after closing and expects the deal to add to adjusted earnings per share by the second quarter after the deal closes.
Ted Doheny, SEE President and CEO: “This is an exciting day for SEE. Liquibox is a highly strategic acquisition to fuel growth and earnings power in our SEE Operating Engine.
“We look forward to welcoming Liquibox’s talented team. Both of our cultures strive for world-class performance and place a strong emphasis on talent, sustainability, innovation and operational excellence.”
Based in Richmond, Liquibox was previously owned by Olympus Partners. Under Olympus’ ownership, Liquibox has experienced significant growth including opening a state-of-the-art greenfield facility in Madrid, Spain.
Liquibox employs more than 1,300 team members operating across 18 locations in North America, Europe, Africa, Asia and Australia.
The company estimates 2022 full-year revenue of US$362M. Its Bag-in-Box business is comprised of fountain beverage syrup, milkshake mix, dairy, coffee, water, wine, liquid foods and industrial applications.
Ken Swanson Liquibox President and Chief Executive Officer said: “We look forward to partnering closely with the team at SEE.
“This will be a new chapter for Liquibox – a chance to accelerate innovation and bring sustainable packaging solutions to more customers and geographies.”
Sealed Air Q3 earnings top estimates
Meanwhile, Sealed Air reported third-quarter net income that rose 24.6% from a year ago to US$134.2 million, or 92 cents a share, while adjusted earnings per share of 98 cents beat the FactSet consensus of 90 cents.
Sales slipped 0.4% to US$1.40 billion, below the FactSet consensus of US$1.45 billion. The stock, which was still inactive in the premarket, has tumbled 22.6% over the past three months while the S&P 500 SPX, -0.12% has lost 6.0%.
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