Sealed Air selling medical packaging business for $125 million

Packaging provider Sealed Air Corporation has announced it has agreed to sell its rigid medical packaging business to private equity firm Mason Wells Buyout Fund III L.P., for US$125 million.

Elmwood Park, N.J.-based Sealed Air’s rigid medical packaging business was formed from three previous acquisitions: Nelipak Holdings, Alga Plastics and ATE Costa Rica, which includes facilities in Ireland, the Netherlands, U.S. and Costa Rica.

“The transaction is another step in our commitment to a disciplined approach to portfolio management,” said Sealed Air chief executive officer Jerome A. Peribere. “Our rigid medical business has a strong global position but no longer presents a strategic fit for us. By further focusing our portfolio, we can maximize our investment in new innovations which are core to our market-driven business. Sealed Air remains committed to the medical packaging industry and will continue to manufacture medical and pharmaceutical films.”

The transaction is expected to be completed in the fourth quarter of 2013.

In 2012, Sealed Air generated revenue of approximately $7.6 billion. Its portfolio of brands includes CryovaSealed Air brand food packaging solutions, Bubble Wrap brand cushioning, and Diversey cleaning and hygiene solutions.

Sealed Air has approximately 25,000 employees serving customers in 175 countries. The company’s Canadian operation is headquartered in Brampton, Ont.