x
Breaking News
More () »

Charlotte company behind BubbleWrap acquiring bag-in-box business for more than $1 billion

Sealed Air is acquiring Virginia-based Liquibox as part of a strategy to expand its foothold in packaging.
Credit: Business Wire
(Graphic: Business Wire)

CHARLOTTE, N.C. — The Charlotte company responsible for BubbleWrap and other packaging products is making a billion-dollar acquisition, adding what it calls a pioneer into its portfolio once the transaction is complete.

In a news release and subsequent conference call with investors on Tuesday, Sealed Air announced it has signed a definitive agreement to purchase Liquibox, based out of Richmond, Va. Liquibox is best known for sustainable bag-in-box packaging for things like beverages, liquid food, and other non-food liquids.

For the latest breaking news, weather and traffic alerts, download the WCNC Charlotte mobile app.

Liquibox's acquisition is valued at $1.15 billion on a cash-free debt-free basis. Sealed Air said it has secured $1 billion of committed debt financing with the balance to be paid with cash on hand. As of Sept. 2022, Sealed Air said it had $1.4 billion of liquidity with $1.1 billion available under committed credit facilities and $249 million in cash.

Sealed Air said the acquisition makes sense for its own Cryovac Fluids and Liquids arm, which is its fastest-growing area. Flexible packaging solutions reportedly present a $7 billion revenue opportunity with plenty of growth.

“We look forward to welcoming Liquibox’s talented team. Both of our cultures strive for world-class performance and place strong emphasis on talent, sustainability, innovation and operational excellence," said Ted Doheny, CEO and president of Sealed Air.

You can stream WCNC Charlotte on Roku and Amazon Fire TV, just download the free app.

"This will be a new chapter for Liquibox – a chance to accelerate innovation and bring sustainable packaging solutions to more customers and geographies,” said Ken Swanson, Liquibox's president and CEO.

The transaction is set to be completed in Q1 of 2023, subject to regulatory approvals and other closing conditions. Goldman Sachs is the sole financial advisor for the acquisition. Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Sealed Air, and KPMG advised on due diligence for financial, tax, human resources, and information technology.

WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.

Before You Leave, Check This Out