A new company has been created to own Sealed Air Corp.'s former North American foam trays and related absorbent pads business.
Novipax was launched by holding company Atlas Holdings LLC, the companies announced April 2. Atlas said the deal vaults Novipax into one of the largest producers of expanded polystyrene foam trays in the United States and the largest in absorbent pads.
Sealed Air said the business it sold had sales of about $214 million last year as part of its Food Care division. Novipax picks up plants in Indianapolis; Paxinos and Reading, Pa.; Rockingham, N.C., and Grenada, Miss. The operations employ about 760.
Novipax will be led by CEO Bob Larson, former president of the North America Food and Consumer Packaging division of packaging group Coveris Holdings Corp. Don Eldert becomes executive vice president and chief financial officer. He was executive vice president and CFO at AGI-Shorewood Global, an Atlas business in specialty printing and packaging. Ron Leach, former CEO of Tegrant Corp., will join Novipax's board of directors.
Novipax will supply EPS trays and absorbent pads to companies that package meat, poultry and seafood.
Sealed Air said the businesses were not a core strategic division.
“As we increase our focus on innovation and differentiation in the flexible packaging industry, the decision to divest trays and pads aligns with our overall strategy, and we are confident Novipax is the right strategic buyer to further expand and grow this business,” said Sealed Air President and CEO Jerome Peribere in a news release.
Sealed Air said it would provide more information on the divestiture during its first quarter earnings call scheduled for April 30.
Atlas of Greenwich, Conn., and affiliates own 17 companies in a wide range of manufacturing. Its subsidiaries generate sales exceeding $4 billion per year.
