06.01.11
Sealed Air Corporation has entered into a definitive agreement to acquire leading I&I firm Diversey in a transaction valued at $4.3 billion. The deal is expected to be completed in 2011.
Under the terms of the agreement, Diversey shareholders will receive $2.1 billion in cash and an aggregate of 31.7 million shares of Sealed Air common stock valued at $25.68 per share based on Sealed Air’s closing stock price on May 31, 2011 for a total equity consideration of $2.9 billion.
Diversey is a privately-owned firm controlled by members of the Johnson family and Clayton, Dubilier & Rice, LLC. Upon closing of the transaction, Diversey shareholders are expected to own approximately 15% of Sealed Air common stock.
Based in Sturtevant, WI, Diversey provides cleaning, sanitization and hygiene solutions to industrial and retail customers in the food and beverage, food service, health care, and lodging sectors, as well as to building service contractors worldwide. In 2010, Diversey generated net sales of $3.1 billion. The firm employs more than 10,000 people worldwide and operates in more than 60 countries.
Sealed Air, a leading provider of food and industrial system solutions that help ensure that food retains its freshness, operates in 52 countries, employs more than 16,000 people and generated net sales of $4.5 billion in 2010. The firm is based in Elmwood Park, NJ.
“This transaction represents a strategic growth opportunity that leverages Sealed Air’s core competencies and positions our company to further capitalize on the megatrends that drive both businesses,” said William V. Hickey, president and CEO of Sealed Air. “With Diversey, we will expand our footprint beyond specialty packaging solutions by gaining entry into a $40+ billion chemical cleaning and hygiene industry that has attractive fundamentals and is already in our value chain. This combination is also financially compelling, and we expect it to deliver enhanced earnings per share and free cash flow generation, creating meaningful value for our shareholders.”
The Diversey name extends back to 1923, with the formation of Diversey Corporation in Chicago. Later it was known as Diversey Lever. In 2002, Johnson Wax Professional acquired the company from Unilever NV. The combined company was known as JohnsonDiversey, Inc. until March 2010.