Australian diversified manufacturer Southcorp Holdings Ltd. of Adelaide is selling its Protective Packaging business division to Sealed Air Corp. of Saddle Brook, N.J. Protective Packaging manufactures several products under license from Sealed Air. These include Cell Aire polyethylene foam sheeting, nylon/PE co-extrusion bubble film, mailing bags constructed by laminating the bubble film to paper, and paper mailing bags.
It also manufactures Flow Pak polystyrene loose-fill packaging under license to another Amer-ican company, Free-Flow Pack-aging Corp. of Redwood City, Calif.
Brian Porter, general manager of Southcorp's general products division, said Protective Pack-aging generates about A$30 million (US$23 million) in sales annually.
He said Protective Packaging is a discrete unit within Southcorp Packaging, and ``all personnel will be transferring.''
A letter of intent has been signed, and the sale is expected to be completed before June 30.
Graham Kraehe, Southcorp Holdings managing director and chief executive, said Protective Packaging had ``limited international growth potential for Southcorp'' because use of Sealed Air's technology was limited, under the licensing agreement, to Australia and New Zealand.
According to Kraehe, the divestment of the business was consistent with Southcorp's strategy of concentrating investment in businesses with international growth potential.
Southcorp Holdings has four divisions - wine, water heaters, appliances and packaging.
Southcorp Packaging, formerly known as Gadsden Rheem, has estimated 1995-96 sales of A$1.05 billion (US$817 million), including North American sales of A$150 million (US$117 million), and provides more than 50 percent of Southcorp Holdings' total income.