Sealed Air to spin-off Diversey Care in 2017

Sealed Air to spin-off Diversey Care in 2017

Sealed Air is to spin-off Diversey Care and the related hygiene business by the second half of 2017.The Diversey Care division and the food hygiene and cleaning business within its Food Care division would be led by Dr Ilham Kadri, president of Diversey Care.Sealed Air’s shareholders would own 100% of the common stock of New Diversey following the spin-off.The company is planning the internal separation of the New Diversey business lines from the remaining entity in transactions intended to be tax efficient from a US and foreign perspective.Spin-off valueThe plan is intended to allow the remaining Sealed Air business and New Diversey to focus on strategic objectives.Both will benefit from leaner, more streamlined operating structures to enable more efficient management decision-making, said Sealed Air.Diversey Care’s portfolio includes the Internet of Clean, Intellibot robotics, plant-based biodegradable chemistries and AHP disinfection technologies.Jerome A. Peribere, Sealed Air’s president and CEO, said: “Our board and management team continually evaluate options to enhance shareholder value and we believe this spin-off will allow both New Sealed Air and New Diversey to realize their full potential. “Following the spin-off, each company will be well-positioned for profitable growth through a proven business model and enhanced strategic focus, improved operating efficiencies and optimized capital allocation to enable investments in new disruptive technologies.” Sealed Air sold Diversey Japan to The Carlyle Group for $377m to focus on higher growth markets in 2012.The firm bought Diversey, which serves brewers, beverage bottlers, dairies and food processors, for $4.3bn in 2011.New business structure Sealed Air will continue to provide food and product packaging and be led by Peribere and its existing management team.The company has 23,000 employees who serve customers in 169 countries.On a pro forma basis for the twelve months ended June 30, 2016, New Sealed Air generated $4.2bn in sales and had adjusted …

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