By Aishwarya Jain
(Reuters) -U.S. packaging company Sealed Air Corp said on Monday it agreed to be bought by private equity firm CD&R for $10.3 billion, including debt, in a deal that will take the company off the stock market.
Under the agreement, Sealed Air shareholders will receive $42.15 in cash per share, a nearly 13% premium to its closing price on November 11.
Sealed Air, which was founded in 1957 as an experiment in interior design, is best known for its protective packaging material, Bubble Wrap.
Last week, news outlet Semafor reported that activist investor Ancora, which holds more than 2% of Sealed Air as per data compiled by LSEG, had been pressuring the company to pursue a sale.
“CD&R’s partnership will enhance our ability to invest in growing our Food and Protective businesses,” said Dustin Semach, CEO of Sealed Air.
The Charlotte, North Carolina-based company caters to food and e-commerce retailers, industrials and firms in the medical and life sciences businesses.
In the third quarter ended September 30, net sales in its food segment were flat, while those in the protective segment fell 3%, on a constant-currency basis.
“While the valuation to us is on the low-end of what we previously theorized, we note that the packaging sector is at a decade-plus low-point on valuation following underperformance over the past three years,” said Ghansham Panjabi, senior analyst at Baird Equity Research.
The packaging company’s deal with CD&R allows for a “go-shop” period of 30 days, during which Sealed Air can solicit additional acquisition proposals from third parties.
Evercore served as financial advisor and Latham & Watkins as legal counsel to Sealed Air for the deal, which is set to close in mid-2026.
Shares of Sealed Air were down 3.4% on Tuesday.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Tasim Zahid and Sahal Muhammed)
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