SEE - Sealed Air to buy Liquibox in $1.15B deal; Q3 earnings top estimates

Sealed Air ( NYSE: SEE ) said Tuesday it agreed to acquire Liquibox, a manufacturer of Bag-in-Box sustainable fluids and liquids packaging and dispensing products for $1.15B.

Sealed Air ( SEE ) said the acquisition is "highly complementary" to its Cryovac Fluids & Liquids business, the company's fastest growing area.

The company expects annual cost synergies of $30M after closing, with the deal adding to earnings by the second quarter after the deal closes.

Liquibox is expected to grow at a 6%-8% compound annual growth rate CAGR, and once combined with Cryovac Fluids & Liquids business it is seen growing at double digit rates due to the complementary solutions portfolio, technologies and operations.

Sealed Air ( SEE ) also reported better than expected Q3 adjusted earnings but net sales fell 0.7% Y/Y to $1.4B.

For FY 2022, the company trims guidance for adjusted EPS of $4.05-$4.15 from $4.05-$4.20, adjusted EBITDA of $1.21B-$1.23B from $1.22B-$1.25B, and net sales of $5.65B-$5.75B from previous guidance of $5.85B-$6.05B.

Sealed Air's ( SEE ) stock price return shows a 28% YTD loss and a 19% decline during the past year .

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