Sealed Air has entered into an agreement to sell its Diversey Care division and the food hygiene and cleaning business within its Food Care division to Bain Capital Private Equity for $3.2 billion.
The acquired company – temporarily called New Diversey – is a provider of cleaning and hygiene products to the institutional marketplace, serving lodging, food service, retail, health care, food and beverage companies, as well as building service contractors worldwide. The company was founded in Chicago in 1923 and was ultimately acquired in October 2011 by Sealed Air for $4.3 billion (9.5x 2010 adjusted EBITDA of $452 million).
Post-closing, New Diversey will employ approximately 8,600 people globally. Diversey Care and the related food hygiene businesses combined generated net sales of approximately $2.6 billion in 2016. The company is based near Milwaukee in in Racine, WI (click HERE for the Diversey website).
“Diversey has a long track record of leadership in the hygiene and cleaning solutions market on a global basis,” said Ken Hanau, a Managing Director at Bain Capital. “We are excited to partner with the talented team at Diversey to grow across key market verticals and geographies while investing in innovative hygiene solutions. Bain Capital’s integrated global platform and strong growth orientation are well aligned with the strategic vision for Diversey.”
Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has offices in New York and Boston (www.baincapitalprivateequity.com).
Sealed Air Corporation (NYSE:SEE) is a packaging company known for its brands – Cryovac food packaging, Bubble Wrap cushioning, and Diversey cleaning and hygiene. The company had revenues of $6.8 billion in 2016 and is headquartered in Charlotte, NC (www.sealedair.com).
Credit Suisse and Goldman Sachs together with Barclays, BofA Merrill Lynch, HSBC, RBC Capital Markets, and SunTrust Robinson Humphrey are providing committed financing for this transaction.
Citi is acting as financial advisor to Sealed Air. Barclays and RBC Capital Markets are serving as financial advisors to Bain Capital Private Equity.
This transaction is expected to close in the second half of 2017.
© 2017 Private Equity Professional | March 27, 2017
