Sealed Air buys Singapore-based foam maker Fagerdala

In a bid to increase its presence in Asia, packaging supplier Sealed Air Corporation has acquired Fagerdala Singapore Pte Ltd., a manufacturer and fabricator of polyethylene foam for US$100 million.

Fagerdala, established in 1983 with headquarters in Singapore, has 14 manufacturing facilities, employs more than 1,300 people in China, Thailand, Singapore, Malaysia, Mexico and the United States, and generated $80 million in sales in 2016.

In a statement, Sealed Air said it plans to leverage Fagerdala’s manufacturing footprint in Asia, expertise in foam manufacturing and fabrication, and commercial organization to grow sales in the consumer electronics, medical equipment and devices, automotive, temperature assurance, and e-commerce fulfillment sectors.

“With the acquisition of Fagerdala, we will significantly expand our presence and manufacturing footprint in Asia,” said Kenneth Chrisman, president of Sealed Air’s product care division. “Fagerdala has unique vertically integrated operations in the Asian market that will allow us to expand their business beyond foam and offer our combined customer base a full portfolio of differentiated solutions, such as automated fulfillment systems and operational excellence consultative services.”

The sale is expected to close in October of 2017.

Headquartered in Charlotte, N.C., Sealed Air’s brands include Cryovac food packaging solutions and Bubble Wrap brand cushioning. The company generated $4.2 billion in sales in 2016 and has approximately 14,000 employees who serve customers in 117 countries. The firm’s Canadian division, Sealed Air of Canada Ltd., is located in Brampton, Ont.