US – Sealed Air (SEE) has invested US$8 million in Israeli digital post-press manufacturer Highcon, in what it said is in the context of “a strategic collaboration” between the two companies.
SEE said it had identified that Highcon’s digital paperboard converting capabilities and “unequaled know-how” around the laser cutting of paperboard can support and accelerate its vision and business objectives.
The scope of the strategic collaboration includes the development of new product offerings, expansion into new segments, and enabling manufacturing efficiencies by leveraging Highcon technology.
The investment in the form of convertible debt and 15% warrants is to be converted by the fifth anniversary of the effective date at a price of 3.1 NIS [New Israeli Shekel] per share.
The collaboration also includes additional warrants to be granted against possible future purchases of up to US$20 million of Highcon’s products and services over a period of three years.
In addition, it includes the purchasing of a Highcon Beam 2C system for delivery and installation in Q1 2023.
Sealed Air said having the system in-house will enable it to accelerate the testing of new designs and products, as well as the manufacturing and delivery of corrugated products to the company’s customers.
Sergio Pupkin, SVP and chief growth and strategy officer at SEE said: “Over the past months, the SEE team has been impressed with the talent at Highcon and the company’s culture. Highcon’s technology and capabilities represent a meaningful opportunity for SEE.
“Highcon’s sustainability value proposition aligns with and can help us advance our vision and plans. The roadmap we are developing together is exciting, and our investment in Highcon is a natural first step in this context.”
Highcon CEO Shlomo Nimrodi added: “SEE is taking Highcon’s technology to places that were beyond the way that we typically defined our market opportunity.
“It’s particularly gratifying to see how SEE reacted to the talent and passions of the Highcon team, and their recognition of the strategic value of our technology.
“I’m confident that it’s just the beginning as we prove our value to SEE to enable further expansion of our relationship.
Earlier this year Highcon raised US$18.5 million using a private share placement. The company floated on the Tel Aviv Stock Exchange (TASE) at the end of 2020.
The IPO was over-subscribed, and valued Highcon at US$165 million after the offering, with the business raising US$45 million.
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