Sealed Air agrees to US$10.3B takeover by CD&R as packaging sector consolidation accelerates

USA – Sealed Air Corporation has entered into a definitive agreement to be acquired by funds affiliated with private equity firm Clayton, Dubilier & Rice (CD&R) in an all-cash transaction valued at US$10.3 billion, marking one of the largest packaging-sector buyouts in recent years.

Approved unanimously by Sealed Air’s board, the deal is slated to close in mid-2026, after which the manufacturer, best known for inventing Bubble Wrap, will go private and be delisted from the New York Stock Exchange.

The company will maintain its headquarters in Charlotte, North Carolina.

Under the terms, shareholders will receive US$42.15 per share in cash, representing a significant premium. The agreement also includes a 30-day “go-shop” period, allowing the board to pursue or negotiate superior acquisition proposals.

Board chairman Henry Keizer said the decision followed a year-long review of strategic alternatives.

“This transaction delivers significant value and represents immediate and certain realization for our stockholders,” he said. “It further allows the company to execute its long-term strategic vision.”

Financing for the acquisition will be supported by CD&R’s investment funds, alongside debt commitments led by BofA Securities, BNP Paribas, Goldman Sachs, JP Morgan, UBS, and Wells Fargo, with additional backing from Citi, Mizuho and RBC Capital Markets.

Sealed Air generated US$5.4 billion in revenue in 2024 and employs more than 16,000 people globally.

Its broad portfolio spans food, medical, industrial, and e-commerce packaging solutions. The takeover comes as the company navigates mixed financial results.

In Q2 FY25, net sales dipped slightly to US$1.33 billion, with the Food division holding steady at US$896 million despite a 7% slump in U.S. beef production.

President and CEO Dustin Semach said shifting consumer patterns and global trade pressures were reshaping demand, emphasizing the company’s renewed focus on retail-ready packaging and productivity gains through its CTO2Grow program.

CD&R partner Rob Volpe voiced confidence in Sealed Air’s growth strategy. “We are committed to supporting continued investment in its people, assets and innovative product portfolio,” he said.

The acquisition reflects broader consolidation and investment trends across the global packaging industry.

In recent years, private equity firms have increasingly targeted packaging manufacturers for their stable cash flows and exposure to growth segments such as e-commerce and sustainable materials.

International Paper recently acquired British Packaging company DS Smith in a US$9.74 billion deal.

The merger has created significant value for shareholders and positioned the combined company as a global leader in sustainable packaging, focusing on expanding in the growing markets of North America and Europe.

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