USA – American packaging company, Sealed Air has reached an agreement to acquire Automated Packaging Systems, Inc. (APS), a leading manufacturer of flexible bag packaging systems.
The transaction is valued at US$510 million on a cash and debt free basis and will see Sealed Air expand its capabilities in protective packaging.
Founded in 1962 and headquartered in Ohio, US, APS provides full flexible packaging systems, including industry leading equipment, sustainable materials and technical services.
It employs more than 1,200 people, operating in over 60 countries and has seven manufacturing sites in the U.S. and U.K.
APS reported 10% sales growth to US$290 million in 2018, offering products and services under common brands such as Autobag® and EarthAware®.
“Automated Packaging Systems is a market leader with unique and innovative solutions, complete with automated equipment, materials and services,” said Ted Doheny, Sealed Air President and CEO.
“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 noted that the transaction broadens its portfolio as it looks to drive growth in e-commerce, fulfillment and food packaging markets.
It expands services in leading automation, direct service expertise and total systems approach, while driving incremental growth and synergies.
APS brings highly complementary and additive capabilities to Sealed Air, including expertise in engineering, automation technology and sustainability, which strengthens the Company’s protective packaging solutions.
“We look forward to working with the talented employees of APS. Their culture of operational excellence, creative collaboration and innovation built over 57 years is recognized and shared by Sealed Air,” said Doheny.
“We are confident that the APS business will thrive as part of our platform, given our global reach, distribution network and supply chain operations.”
The transaction is expected to close early in the third quarter of 2019, subject to applicable regulatory reviews and customary closing conditions.