Sealed Air plans to spinoff its Diversey Care division and the food hygiene and cleaning business within its Food Care division (New Diversey) by the second half of 2017.
Under the plan, the remaining Sealed Air business (New Sealed Air) and New Diversey will be able to focus on a distinct set of strategic objectives as independent companies, able to better pursue future growth opportunities globally.
“Our Board and management team continually evaluate options to enhance shareholder value and we believe this spinoff will allow both New Sealed Air and New Diversey to realize their full potential,” said Jerome A. Peribere, president and chief executive officer of Sealed Air. “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.”
Each will benefit from leaner, more streamlined operating structures to enable more efficient management decision-making. New Sealed Air will continue to provide food, product and medical packaging, and knowledge-based solutions for waste reduction, resource conservation and product security. New Diversey, to be led by Dr. IIham Kadri, will be a hygiene and cleaning company, offering floor care machines, tools, chemicals and services.
Peribere will continue on as president at chief executive officer of New Sealed Air. Additional members of New Diversey’s management team and Board of Directors will be named in the months leading up to the completion of the spinoff.
Sealed Air will discuss the spinoff during its Q3 earnings conference call and webcast at 11 a.m. EST on October 27.
Sealed Air has approximately 23,000 employees who serve customers in 169 countries. In 2015, the company generated about $7.0 billion in revenue. Diversey Care is developer of various technolgies including, the Internet of Clean, Intellibot robotics, unmatched plant-based biodegradable chemistries and AHP disinfection technologies.
