Sealed Air Buys Automated Packaging Systems
Market Expertz | May 07, 2019
Sealed Air Corporation has entered into a definitive agreement to purchase Automated Packaging Systems, Inc. (APS) in a $510 million deal on a cash and debt-free basis. Sealed Air is engaged in providing innovative solutions to assist customers in the Food care and Product care segments with their most significant packaging needs. The company is well known for its brands Cryovac food packaging and Bubble Wrap cushioning packaging. APS is a leading producer of highly reliable, automated bagging systems and offers full flexible packaging systems including industry-leading equipment, technical services, and sustainable materials. One if its most prominent products are its invention called Autobag bagging machines along with the three recycled film solutions under its EarthAware brand.
Headquartered in Streetsboro, Ohio, APS has over 1,200 employees with a consumer base encompassing more than 60 countries. The company, founded in 1962, operates seven manufacturing facilities in the United States and the United Kingdom. Last year, the manufacturer recorded $290 million sales with a 10 percent year-over-year increase. Ted Doheny, President and CEO, Sealed Air has opined that APS is an industry leader with unique and innovative solutions, equipped with automated equipment, services and materials and has a strong patent portfolio. Doheny commented that this move is also a significant part of the company’s Reinvent SEE goal that involves doubling their innovation rate in the next five years. The deal will also expand the range of their automated solutions and sustainable packaging profile with its additive capabilities to the company. APS also specializes in engineering, automation technology and sustainable solutions that will complement Sealed Air’s protective packaging solutions division.
The agreement is scheduled for closing at the beginning of the third quarter this year, subject to its compliance with the concerned regulatory reviews and customary closing conditions. Sealed Air will most likely use the cash in hand and credit facilities to fund the transaction.