Packaging giant Sealed Air will be acquired by private equity firm CD&R in an all-cash deal valued at $10.3 billion, or $42.15 per share.
That amount represents a 41% premium to Charlotte-based Sealed Air’s stock price as of Aug. 14, when shares closed at $29.84. It’s a 24% increase from the company’s 90-day volume-weighted average price as of Nov. 12, The Wall Street Journal reported Nov. 12 that Sealed Air was in talks with New York-based Clayton Dubilier & Rice.
Sealed Air shares closed Tuesday at $41.92, down 3.1%. Some investors had expected the company to receive an offer in the mid-$40s.
Sealed Air’s board of directors unanimously approved the sale, which is expected to close in mid-2026. Sealed Air’s headquarters will remain in Charlotte, but it will become a privately held company. Clayton Dubilier is among the largest U.S. PE firms. Its holdings include Cary-based Cornerstone Building Brands.
Sealed Air is best known for inventing Bubble Wrap. The shares had been flat over the past year and had declined 13% over the past five years, before The Wall Street Journal report. Other Sealed Air products include Cryovac brand food packaging, Sealed Air brand protective packaging, Liquibox brand liquids system and Autobag brand automated packaging systems. Sealed Air has about 16,400 employees who operate in 117 countries and territories.
Profits totaled $265 million in 2024, versus $342 million in 2023 and $492 million in 2022. Revenue has been in the $5.3 billion to $5.6 billion range for the past four years.
Dustin Semach became CEO in February after joining the company as chief financial officer in 2023. He previously was CEO of TTEC, a technology provider based in Englewood, Colorado. Sealed Air is based in southwest Charlotte.
“After careful review of strategic alternatives over the past year, the board is confident that this transaction delivers significant value and is in the best interests of our stockholders and the company,” said Henry Keizer, board chairman of Sealed Air. “Furthermore, this transaction represents a realization of immediate and certain value for Sealed Air stockholders at a substantial premium and enables the company to execute its long-term strategic vision.”
“Today marks an inflection point in Sealed Air’s history and we look forward to embarking on this next phase of growth in partnership with CD&R,” said Semach. “Through more rapid innovation, expanded capabilities and broader reach, we will create more value for our customers and more opportunities for our employees.”
Under the agreement, Sealed Air can solicit additional acquisition proposals from third parties 30 days from the signing of the agreement, with an additional 15 days to negotiate a definitive agreement with qualifying parties. There is no assurance that a better proposal will emerge, the company said.
“Sealed Air is an exceptional global business with a talented leadership team, leading franchises and attractive underlying fundamentals,” said Rob Volpe, Partner at CD&R. “We are committed to supporting Sealed Air’s continued investment in its people, assets, and product portfolio. We have great respect for Sealed Air’s senior leadership team, and look forward to partnering with them.”
Evercore served as financial adviser and Latham & Watkins served as legal counsel to Sealed Air. Kirkland & Ellis and Debevoise & Plimpton served as legal counsel to CD&R.