Sealed Air Corp. of Elmwood Park, N.J., has entered into a definitive agreement to acquire Sturtevant-based Diversey Holdings Inc., a solutions provider to the global cleaning and sanitization market, in a transaction valued at $4.3 billion.
The transaction is expected to be completed later this year.
Under the terms of the agreement, Diversey shareholders will receive $2.1 billion in cash and an aggregate of 31.7 million shares of Sealed Air common stock valued at $25.68 per share based on Sealed Air's closing stock price on May 31, for a total equity consideration of $2.9 billion. Diversey is a privately-owned company, controlled by members of the Johnson family and Clayton, Dubilier & Rice, LLC ("CD&R"). Upon closing of the transaction, Diversey shareholders are expected to own approximately 15 percent of Sealed Air common stock.
Diversey provides cleaning, sanitization and hygiene solutions to industrial and retail customers in the food and beverage, food service, health care, and lodging sectors, as well as to building service contractors worldwide. In 2010, Diversey generated net sales of $3.1 billion. Diversey employs more than 10,000 people worldwide and operates in more than 60 countries.
"This transaction represents a strategic growth opportunity that leverages Sealed Air's core competencies and positions our company to further capitalize on the megatrends that drive both businesses," said William Hickey, president and chief executive officer of Sealed Air. "With Diversey, we will expand our footprint beyond specialty packaging solutions by gaining entry into a $40+ billion chemical cleaning and hygiene industry
More at source: Biz Times