Sealed Air’s bid to become the leading global player in the food processing hygiene sector received a boost yesterday after it announced its planned takeover of Diversey had been given the green light by all competition authorities.
The US company revealed in June that it had reached an agreement to buy Diversey for US$4.3bn with the aim of becoming the “global sanitation leader”.
Diversey, headquartered in Wisconsin, provides cleaning, sanitisation and hygiene solutions to a host of industrial and retail players in the food and beverage, food service, health care, and lodging sectors, as well as to building service contractors worldwide.
Following the approval of all regulatory bodies, Sealed Air said yesterday it expected to complete the deal in the fourth quarter of 2011 and planned to part-finance the deal by offering notes worth $1.5bn.
It estimated that its new asset would begin making money for the company in the first full year after the takeover had been inked.
The buyout will create a global giant with combined sales topping $7bn and a workforce of 26,000. In 2010, Diversey sales reached f $3.1bn across more than 60 countries, while Sealed Air operates in 52 countries and generated net sales of $4.5bn.
"This transaction represents a strategic growth opportunity that leverages Sealed Air's core competencies and positions our company to further capitalize on the mega trends that drive both businesses," said William V. Hickey, president and CEO 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 that has attractive fundamentals and is already in our value chain.”