Shares of Sealed Air (SEE), the maker of popular protective packaging material bubble wrap, fell over 3% on Monday morning. This came after the North Carolina-based company agreed to a $10.3 billion acquisition offer from private equity firm CD&R.
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The company was founded nearly seven decades ago by Alfred Fielding and Marc Chavannes, who invented Bubble Wrap and established the company to commercialize their materials to protect goods during shipping.
Sealed Air to Go Private
CD&R has offered to take the company private by offering shareholders $42.15 per share in cash — Sealed Air went public several decades ago. The figure represents a premium of 41% to the SEE stock price before deal rumors or other external factors surfaced.
Henry Keizer, chairman of Sealed Air, noted that the arrangement will give the company the ability to “execute its long-term strategic vision.” “CD&R’s partnership will enhance our ability to invest in growing our Food and Protective businesses while maintaining a customer-first approach,” added Dustin Semach, Sealed Air’s president and chief executive.
How’s Sealed Air’s Business Doing?
The takeover plan comes as Sealed Air’s revenue came in flat at $1.35 billion from a year ago during its recent third quarter. The figure beat Wall Street analysts’ expectations of $1.31 billion. Earnings per share of $0.87 also surpassed Wall Street’s estimates.
However, the demand for its materials in the North American food sector — especially in the industrial food processing industry — fell during the quarter. This follows declining consumer spending, putting pressure on the company’s packaging business.
Sealed Air noted that the acquisition offer has been unanimously approved by its board but is still subject to the approval of its shareholders. The arrangement is expected to be finalized by mid-2026.
Upon completion, the company’s shares will be delisted from the New York Stock Exchange. However, it will continue to be headquartered in Charlotte, North Carolina.
Is Sealed Air a Good Investment?
Across Wall Street, Sealed Air’s shares currently have a Strong Buy consensus rating. This is based on nine Buys and three Holds issued by 12 analysts over the past three months.
At $43.27, the average SEE price target indicates about 3% upside from the current level.
