Sealed Air Corp. will expand its polyolefin foam business by acquiring Ethafoam and related product lines from Dow Chemical Co.
Sealed Air will pay an undisclosed amount for the product lines based in Hanging Rock, Ohio, and Drusenheim, France. The plants are not included in the deal announced Sept. 25.
Dow lists electronics, military, sports, leisure and transportation as key markets for its foams. Packaging applications are prominent as the materials are resilient and able to resist multiple impacts.
Dow will supply Sealed Air with the product lines for up to 18 months after the deal closes, sometime in the fourth quarter. After that, Dow will close the Hanging Rock site, spokeswoman Rebecca Bentleyn said by telephone. She said Midland, Mich.-based Dow is studying whether to convert the Drusenheim site to a Styrofoam polystyrene foam plant.
Sealed Air, of Elmwood Park, N.J., did not disclose which of its plants will take over manufacturing of the products, said spokesman Ken Aurichio. The firm will get licenses for process technology, customer contracts, trademarks and some production equipment for Ethafoam, Envision, Synergy and Equifoam products. It also will get the rights to the Lamdex trademark.
Sealed Air makes polyolefin foams under the Cellu-Cushion, Stratocell and CelluPlank brand names. Major markets for Sealed Air products are packaging, automotive, sporting goods and toys.
``Dow continually evaluates its portfolio, preferentially investing in technology and growth opportunities that offer strategic growth in core markets where we can be a leader over the long term,'' said Dow Building Solutions Vice President Torsten Kraef in a news release. Dow started in polyethylene foam in 1959.
Sealed Air President and Chief Executive Officer William Hickey said the purchase will broaden his firm's global presence in specialty materials.