Sealed Air’s US$10B buyout: How private ownership could reshape the packaging leader

Sealed Air has entered into a definitive agreement in which it will be acquired by funds affiliated with CD&R. The private investment firm will purchase the food and protective packaging giant for US$10.3 billion. We speak to industry analyst Neil Farmer about how this major acquisition could affect Sealed Air’s packaging innovation pipelines.

“Sealed Air’s performance has been affected by changing trends in e-commerce packaging and cost pressures negatively influencing the purchasing habits of consumers,” he tells Packaging Insights. 

Farmer says the supplier’s protective packaging business has struggled over the last four to five years, and while food packaging has performed better in the last year, overall sales were down by 1.5% in Q3.

“The major requirement by CD&R will be to invest in food and protective packaging and speed up innovation, with the emphasis on barrier solutions and sustainable packaging. I see a concerted growth in these areas, driven by targeting higher value markets and a greater focus on customers.”

Short-term impacts

Sealed Air’s board of directories approved the transaction unanimously. The deal is expected to close in mid-2026, subject to the receipt of stockholder approval, regulatory clearances, and the satisfaction of other customary closing conditions.

“After careful review of strategic alternatives over the past year, the board is confident that this transaction delivers significant value and is in the best interests of our stockholders and the company,” says Henry R. Keizer, chairman of the board at Sealed Air. 

“Furthermore, this transaction represents a realization of immediate and certain value for Sealed Air stockholders at a substantial premium and enables the company to execute its long-term strategic vision.”

Farmer expects CD&R to invest in Sealed Air’s food and protective packaging amid strong sector growth.Farmer expects potential supply chain and manufacturing uncertainties arising from the ownership change to be short-term issues for the company.

“However much will depend on what CD&R decides to do with the whole Sealed Air Group. It is a large and disparate collection of businesses that lends itself to a split or a sale of different parts of the operations.”

Investment in Sealed Air

Sealed Air stockholders will reportedly receive US$42.15 in cash per share. The company says this number represents a premium of 41% to Sealed Air’s unaffected stock price as of August 14 and a premium of 24% to Sealed Air’s 90-day VWAP as of November 12.

“This transaction delivers significant and derisked value to Sealed Air stockholders while accelerating our ongoing transformation,” says Sealed Air’s president and CEO Dustin Semach. 

“CD&R’s partnership will enhance our ability to invest in growing our food and protective businesses while maintaining a customer-first approach. Through more rapid innovation, expanded capabilities, and broader reach, we will create more value for our customers and more opportunities for our employees.”

Rob Volpe, partner at CD&R, adds: “Sealed Air is an exceptional global business with a talented leadership team, leading franchises, and attractive underlying fundamentals.”

“The company has a strong foundation in its industry leadership, committed employee base, deep customer and supplier relationships, differentiated product portfolio, and demonstrated operating capability. We are committed to supporting Sealed Air’s continued investment in its people, assets, and product portfolio.”

After the acquisition, Sealed Air will remain headquartered in Charlotte, North Carolina, and become a privately held company. Its common stock will be delisted from the New York Stock Exchange.

The agreement includes a 30-day “go-shop” period, allowing Sealed Air to actively solicit alternative acquisition proposals from third parties. The company will have an additional 15 days to negotiate a definitive agreement with any qualified bidder. There is no guarantee that this process will result in a superior offer, and Sealed Air does not plan to disclose updates unless required.