Monthly Archives: March 2017

Sealed Air Corporation sells New Diversey

Sealed Air Corporation is selling its Diversey Care division and the food hygiene and cleaning business within its Food Care division.

Sealed Air Corporation

Under the collective banner New Diversey, the division has been acquired by Bain Capital Private Equity for approximately $3.2bn (£2.57bn).

The sale will allow Sealed Air to focus more sharply on its provision of food, product and medical packaging solutions. Upon closing of the transaction, Sealed Air expects to use the proceeds to repay debt and maintain its net leverage ratio in the range of 3.5 to 4.0 times, repurchase shares to minimise earnings dilution, and fund core growth initiatives, including potential complementary acquisitions to its Food Care and Product Care divisions.

New Diversey integrates chemicals, floor care machines, tools and equipment, with a wide range of technology-based value-added services, food safety services and water and energy management. It will continue to employ approximately 8,600 people globally. Diversey Care and the related food hygiene businesses combined generated net sales of approximately $2.6bn (£2.09bn) in 2016.

The deal includes a formal offer to acquire certain of Diversey’s business in France and the Netherlands, which may be accepted following Works Council consultation. The results of operations of New Diversey will be reported as discontinued operations beginning in the first quarter of 2017. Sealed Air is tentatively scheduled to report its first quarter 2017 results on 9 May, 2017.

Speaking about the likely strategy behind the acquisition, Nicholas Mockett, head of packaging M&A, Moorgate Capital, said:“Sealed Air is a global market leader in food and healthcare flexible packaging markets. It is one of the few packaging companies with brands which are recognised by consumers, particularly Cryovac and Jiffy. There was a rationale behind the $4.3bn acquisition of Diversey in June 2011 but the markets did not like the deal and pushed Sealed Air’s share price down as a consequence. Selling the business on to Bain Capital for $3.2bn is drawing a line under that chapter.”

Packaging Guidelines Launched by INCPEN and FDF

Packaging guidelines launched by INCPEN and FDF. INCPEN has linked up with (FDF) to publish a set of guidelines to optimise the use of packaging in the supply chain.

Packaging guidelines launched by INCPEN and FDF

Titled ‘Packaging for people, planet and profit – sustainability checklist’, the publication has a forward from Defra minister Thérèse Coffey.

The checklist is designed to help companies choose and optimise their packaging systems with the aim of improving sustainability through the supply chain.

Jane Bickerstaffe, director of INCPEN, said: “The checklist will help companies improve packaging for food and drink and other products, make it more consumer-friendly and make supply chains more resource-efficient. Supply chain companies are more aware of and responsive to, environmental concerns than many businesses. This checklist will help them demonstrate that responsiveness to the public.”

Helen Munday, director of food safety, science and sustainability and chief scientific officer, Food and Drink Federation, added: “This guidance will help businesses choose and optimise their use of packaging in ways that will contribute to a net improvement in the use of resources across the value chain. This improvement can be achieved whilst continuing to ensure that food safety and quality requirements are not compromised. We encourage all food and drink operators to use it.”

The checklist is also part of the FDF’s Ambition 2025 strategy, which aims to minimise the impact of used packaging associated with food and drink products. It also aims to encourage innovation in packaging technology and design.

PMs inquiry into drinks disposable packaging

PMs inquiry into drinks disposable packaging. An inquiry has been launched by MPs into recycling and environmental concerns caused by disposable drinks packaging.

PMs inquiry into drinks disposable packaging

The Commons’ Environmental Audit Committee (EAC) has begun the enquiry, with concern about household recycling rates stalling at around 44%, below the 57% target for 2017.

The probe will look are what actions are being undertaken by the industry and the government to reduce waste generated by coffee cups and plastic bottles and look over the available solutions.

Mary Creagh, the committee’s chair, said: “Our throwaway society has given us a tide of litter on our beaches, dead seabirds and fish, and plastic in our food. We all enjoy a takeaway coffee or tea, but the cups they are served in are particularly difficult to recycle because they combine plastic coating and cardboard.

“Our inquiry will be taking a serious look at solutions like the use of different materials, behaviour change, better recycling and bottle deposit return schemes.”

The packaging industry is calling for a fair enquiry looking at all factors contributing to waste and recycling levels.

Martin Kersh, the Foodservice Packaging Association’s executive director, said litter research had proven coffee cups and bottles to be a small component of land-based litter and that there are many other contributors to the marine litter which media.

“By limiting the inquiry to cups and bottles as reported in the press, we are concerned that there will be an element of being guilty until being proven innocent. We therefore very much hope the Committee will ensure the profile of those organisations they consult is fairly balanced and that business is given a fair opportunity to be heard.

“We have every faith the EAC will conduct the Inquiry with a view to assessing the effectiveness of all the options available to achieve those aims we all share being to reduce littering and reduce the resources required to meet the demands of consumers exactly and will ensure the Inquiry is conducted with the fairness and openness of this excellent Parliamentary process and in keeping with the high standards of the EAC.”

Government data claimed that plastic bottles and coffee cups are particularly problematic when it comes to recycling. Around half of the 35 million plastic bottles sold every day in Britain are currently collected to be recycled, and two sites across the UK have the capacity to separate the plastic coating from the paper and allowing the cups recycling into new paper products.

In Scotland, campaigners have called for a deposit return schemes for cans and bottles, which is now being considered by the government.

Shoppers would have to pay an extra 10p or 20p for each bottle they buy, which would be refundable upon returning the bottle. Soft drinks giant Coca-Cola said it would back the scheme in Scotland.