Sealed Air has signed an agreement to acquire Automated Packaging Systems (APS), a US-based manufacturer of automated bagging systems, for $510 million.
Founded in 1962 with headquarters in Streetsboro, Ohio, APS employs more than 1,200 people, serves customers in more than 60 countries and operates seven manufacturing sites in the US and UK. In 2018, the company generated $290 million in sales, an increase of approximately 10% year-over-year.
APS offers three recycled film solutions under the EarthAware brand and created Autobag bagging machines.
Sealed Air said the acquisition will allow it to benefit from cross-selling opportunities, enabling additional growth in key markets.
Ted Doheny, Sealed Air president and CEO, said: “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.”
He added: “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 recognised and shared by Sealed Air.
“We are confident that the APS business will thrive as part of our platform, given our global reach, distribution network and supply chain operations.”
It is expected the transaction will close in the third quarter of 2019.
The deal comes a month after Sealed Air joined forces with Japanese firm Kuraray for a project to produce plant-based food packaging. And in February, Sealed Air acquired Philippines-based packaging producer MGM.
Sealed Air, the maker of Bubble Wrap, generated $4.7 billion in sales in 2018 and has approximately 15,500 employees.
© FoodBev Media Ltd 2019