ASIA – US food packaging company, Sealed Air has acquired the Philippines based producer of flexible packaging, MGM Food and Commodities Corp for an undisclosed amount.
With the transaction, expected to close in April, Sealed Air plans to leverage MGM’s expertise to expand its printing and lamination capabilities and better serve customers throughout the Asia Pacific region.
Founded in 1982, MGM provides premium products, packaging materials and food ingredients for consumer-packaged goods markets in Southeast Asia, operating under two divisions, Packaging and Food Ingredients.
The company also exports to and supports companies in Australia, Brunei Darussalam, and New Zealand.
Its flexible packaging materials include laminated vacuum bags, co-extruded shrink and non-shrink vacuum bags, cook-in and ship-in casings, laminates of standard, medium and high barrier properties, thermoformable films (top and bottom web), stand up pouches, grease proof papers and other specialized packaging materials.
“We are excited to have the talented team at MGM join us and improve our ability to deliver world-class innovations to the region’s rapidly growing food market,” said Karl Deily, SVP, President and Chief Commercial Officer of Sealed Air.
“This acquisition enables us to expand our capacity and footprint in Asia and aligns with our strategy to invest in high-growth geographies and markets.”
Sealed Air has operated in the Philippines for more than 20 years and employs more than 2,000 people in Asia while MGM employs 150 people.
The MGM buy follows the Reinvent SEE strategy unveiled in December 2018 to enhance profitability for the business.
The key areas of focus identified include new innovations, selling, general and administrative (SG&A) productivity, product cost efficiency, channel optimisation, and customer service enhancements.
In 2017, the company agreed to sell its Diversey Care division and the food hygiene and cleaning business within its Food Care division to Bain Capital for approximately US$3.2 billion.