Sealed Air acquires Liquibox for US$1.15B to boost global market position
03 Nov 2022 --- Sealed Air (SEE) is acquiring bag-in-box specialist Liquibox for US$1.15 billion. The move is intended primarily to boost SEE’s Cryovac Fluids and Liquids business, part of what it says is a potential US$7 billion market. Sealed Air expects the acquisition to boost its annual growth rate by 6%.
“Liquibox is a highly strategic acquisition to fuel growth and earnings power in our SEE Operating Engine,” says Ted Doheny, SEE president and CEO.
Liquibox employs more than 1,300 people and operates across 18 locations globally. The company estimates 2022 full-year revenue of US$362M. Its Bag-in-Box business comprises fountain beverage syrup, milkshake mix, dairy, coffee, water, wine, liquid foods and industrial applications.
The company recently launched the award-winning Bag-in-Box Liquipure, which is recycle-ready and aims to replace metallic laminated bags, and Liquibox Orbiter, a fully automatic, six-head rotary filler that increases productivity for high-volume operations.
Bag-in-Box
SEE says Bag-in-Box is the most efficient and sustainable way to package and dispense fluids and liquids. “This packaging format is increasing penetration even in mature industries for its sustainability profile and shelf life benefits,” says the company.
In past economic downturns, the category has been more resilient than others, outperforming gross domestic product it continues.
SEE plans to complement its core competencies in barrier bag manufacturing, film extrusion, automation and digital technology together with Liquibox Bag-in-Box and fitments to drive accelerated combined growth.
Liquibox strength
Liquibox expects 2022 full-year revenue and adjusted EBITDA of US$362M and US$85M, respectively. SEE expects to achieve US$30M in annualized estimated cost synergy savings by the end of the third year after the acquisition.
SEE says Liquibox will benefit from its geographical reach and that Liquibox filler equipment technology provides an attractive source of growth for SEE AutomationTM.
E-commerce-ready solutions for fluids & liquids will also benefit from SEE’s integrated approach to digital and the advancement of prismiq digital packaging and printing solutions, it says.
Sealed Air’s recent releases
In September, SEE added three items to its Bubble Wrap brand collection made from 30 or 50% recycled plastic waste. The new range utilizes “ultra-thin” (12.7 microns) film to decrease material usage and carbon emissions.
At FachPack 2022 in Nuremberg, Germany, SEE showcased a range of automated packaging solutions to demonstrate its continuing support for enhancing industry efficiencies, productivity and environmental sustainability. The company highlighted several systems and products in on-stand demonstrations.
Edited by Louis Gore-Langton
