Sealed Air sheds rigid medical packaging unit

By Michael Lauzon
Correspondent

Published: November 13, 2013 3:23 pm ET
Updated: November 13, 2013 3:28 pm ET

Related to this story

Topics Packaging, Medical, Polyethylene

Sealed Air Corp. is exiting the rigid medical packaging market.

The firm announced Nov. 13 that it has agreed to sell the business to private equity firm Mason Wells Buyout Fund III LP of Milwaukee, Wis.

Sealed Air plans the divestiture because the business is no longer strategic, said company spokesman Ken Aurichio in a phone interview.

"It's part of a more disciplined approach to our portfolio, to be more focused," Aurichio said. "It's a separate business with its own research and development and supply chains."

Aurichio said Sealed Air core businesses include flexible packaging for food, protective applications, high-heat uses and other markets, and cleaning and hygiene supplies in its Diversey division.

Sealed Air said it will continue in medical and pharmaceutical markets with flexible packaging.

The rigid medical packaging is mainly made from thermoformed PET. Operations in the business are in Cranston, R.I., Ireland, Netherlands and Costa Rica. Sealed Air entered the market in 2006 through acquisitions. Over the years it bought Nelipak Holdings, Alga Plastics and ATE Costa Rica. Aurichio estimated combined annual sales are about $100 million.

Sealed Air expects to receive $125 million for the sale and to complete it before the end of 2013. It will treat the sale as a discontinued business for accounting purposes. The company predicts its total sales will be about $7.7 billion this year. Its best-known trademarks are Cryovac food packaging, Bubble Wrap cushioning and Diversey.

Mason Wells already has a sizeable stake in the packaging market. Its portfolio includes Coating Excellence International LLC, a flexible packaging producer and converter in Wrightstown, Wis.; Charter NEX Films, a flexible polyethylene film packaging producer in Milton, Wis.; and Mullinix Packages Inc., which makes thermoforming packaging for the food industry.


Comments

Sealed Air sheds rigid medical packaging unit

By Michael Lauzon
Correspondent

Published: November 13, 2013 3:23 pm ET
Updated: November 13, 2013 3:28 pm ET

Post Your Comments


Back to story


More stories

Image

Pactiv expanding in North Carolina

March 5, 2015 4:18 pm ET

Pactiv LLC is spending more than $24 million on an expansion project in North Carolina that will create 59 new jobs.    More

Image

VisiPak adds to customer mix, product offerings with Tulox acquisition

March 5, 2015 2:19 pm ET

VisiPak has acquired Tulox Plastics Corp., a maker of clear plastic packaging.    More

Image

PET makes it possible to have your beer and be sustainable too

March 5, 2015 10:45 am ET

PET could replace stainless steel beer kegs in a material swap product developers say will be more environmentally friendly and cost effective for...    More

Image

Mold maker Moldworx building in Arizona to bring in more molding

March 5, 2015 10:13 am ET

Moldworx LLC has begun leasing more space in Gilbert, Ariz., to allow it to grow its injection molding business.    More

Image

Shepherd named Thermoformer of the Year

March 4, 2015 11:32 am ET

Barry Shepherd, of Shepherd Thermoforming and Packaging Inc., is the newest Thermoformer of the Year.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events