• Now part of Sealed Air: Autobag 600 and 650 from APS
    Now part of Sealed Air: Autobag 600 and 650 from APS

Sealed Air Corporation is set to splash US$510m on acquiring Automated Packaging Systems (APS), a leading manufacturer of automated bagging systems, on a cash and debt free basis.

Sealed Air says the acquisition will broaden its portfolio, driving growth in its e-commerce, fulfillment and food packaging markets. It also says it will extend its automation, direct service expertise and total systems approach, as well as propelling incremental growth, and delivering synergies.

It expects a positive contribuition to EBITDA from the acquisition in the current financial year. In 2018 APS generated US$290m in sales, an increase of approximately 10 per cent year-over-year.

APS provides full flexible packaging systems, including industry leading equipment, sustainable materials and technical services. Known for inventing Autobag bagging machines and pre-opened bags on a roll, APS also offers three recycled film solutions under the EarthAware brand.

Founded in 1962 with headquarters in Ohio, APS employs 1,200 people, with customers in 60 countries, including Australia and New Zealand. It operates seven manufacturing sites, located in the US and UK.

Ted Doheny, Sealed Air president and CEO said, “The addition of APS is well aligned with our Reinvent SEE goal of doubling our innovation rate over the next five years. This transaction expands the breadth of our automated solutions and sustainable packaging offerings, giving us access to growth opportunities in the markets we serve.”

Sealed Air will also benefit from cross-selling opportunities enabling additional growth in key markets. The company also expects cost synergies resulting from supply chain efficiencies.

Sealed Air intends to use cash on hand and credit facilities to finance the transaction. The transaction is expected to close early in the third quarter, subject to applicable regulatory reviews and customary closing conditions. Upon the transaction closing, the company plans to update its 2019 full year outlook on the second quarter earnings conference call, which is tentatively scheduled for July 31.

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