Packaging solutions provider Sealed Air has agreed to acquire Automated Packaging Systems, a US-based manufacturer of automated bagging systems, in a deal worth $510m.
Headquartered in Ohio, APS is engaged in providing full flexible packaging systems, including industry equipment, sustainable materials and technical services.
The company, familiar for developing Autobag bagging machines and pre-opened bags on a roll, offers three recycled film solutions under the EarthAware brand.
APS operates seven manufacturing sites in the US and the UK, and serves customers in more than 60 countries.
Sealed Air president and CEO Ted Doheny: “Automated Packaging Systems is a market leader with unique and innovative solutions, complete with automated equipment, materials and services.
“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 expects the acquisition to bring complementary and additive capabilities, including expertise in engineering, automation technology and sustainability, and strengthen protective packaging solutions.
Additionally, the deal will allow Sealed Air to benefit from cross-selling opportunities while enabling additional growth in key markets.
Doheny added: “We are confident that the APS business will thrive as part of our platform, given our global reach, distribution network and supply chain operations.”
Sealed Air plans to use cash and credit facilities to finance the transaction in order to drive growth opportunities and cost synergies.
In addition to expanding automation, technical service and sustainable packaging offerings, the deal is expected to broaden Sealed Air portfolio to drive growth in e-commerce, fulfillment and food packaging markets.
Subject to applicable regulatory reviews and customary closing conditions, the transaction is scheduled to be completed in the third quarter of 2019.
On the transaction, Goldman Sachs & Co served as exclusive financial advisor and K&L Gates acted as legal advisor to Sealed Air.
Earlier this year, Sealed Air to buy MGM’s flexible packaging business agreed to acquire the flexible packaging business of Philippines-based MGM for an undisclosed sum.