Home' Inclean : INCLEAN May-Jun 2017 Contents 6 INCLEAN May/June 2017
Sealed Air Corporation has entered into a definitive agreement to
sell its Diversey Care division, and the food hygiene and cleaning
business within its food care division, to Bain Capital Private
Equity for US$3.2 billion.
The food hygiene and cleaning business and Diversey Care,
now called New Diversey, generated net sales of approximately
US$2.6 billion in 2016.
Commenting on the sale, Jerome A. Peribere, president and CEO,
said: “We are pleased that New Diversey has a strong partner to
support future growth initiatives and drive further expansion.
Diversey Care and its related hygiene business has built an
impressive innovation pipeline that includes the Internet of Clean,
robotics and AHP disinfection technologies, revamped its go-to-
market strategy and significantly improved profitability.”
Ken Hanau, MD of Bain Capital Private Equity, said: “Diversey
has a long track record of leadership in the hygiene and cleaning
solutions market on a global basis.”
“We are excited to partner with the talented team at Diversey to
grow across key market verticals and geographies while investing
in innovative hygiene solutions. Bain Capital’s integrated global
platform and strong growth orientation are well aligned with the
strategic vision for Diversey.”
Upon closing of the transaction, Sealed Air said it expects to
use the proceeds to repay debt and maintain its net leverage ratio
in the range of 3.5 to 4.0 times, repurchase shares to minimise
earnings dilution, and fund core growth initiatives, including
potential complementary acquisitions to its food care and
product care divisions.
The sale of New Diversey is expected to close in the second
half of 2017, and is subject to certain regulatory approvals and
customary closing conditions.
The acquisition includes a formal offer to acquire certain of
Diversey’s business in France and the Netherlands, which may be
accepted following Works Council consultation.
Citi is the financial adviser to Sealed Air and Barclays and RBC
Capital Markets were Bain Capital’s financial advisers.
Sealed Air sells Diversey Care division for US$3.2 billion
Downer EDI Limited has lodged a
$1.2 billion takeover bid for cleaning
and facilities management group,
Downer, which is understood to
currently hold a 20 per cent stake in the
company, announced it is planning to
raise $1.01 billion from institutional and
retail investors to fund the takeover.
Grant Fenn, Downer CEO, said: “The
acquisition of Spotless is a significant
investment in Downer’s strategy to
expand its capabilities and strengthen
its position as a leading provider of
services to customers in Australia and
At the time of print Spotless had urged
shareholders to “take no action”, stating
the Downer offer is “highly conditional”.
Spotless said the board would evaluate
the offer and Downer’s bidder statement
and provide shareholders with a
recommendation in due course.
Spotless chairman Garry Hounsell
said: “The Spotless board continues to
believe in the fundamental strengths of
“We will assess any proposal in the
context of our announced strategy reset,
including the recently announced contract
portfolio restructure, which is expected
to be a material driver of growth and
enhanced future performance.”
Spotless has engaged Citi as its financial
adviser and Gilbert + Tobin as its legal
adviser in relation to the proposal.
The takeover proposal follows the
launch of a class action filed against
Spotless Group field in February after
allegations the service group mislead
investors about its 2015 financial results.
The statement of claim alleges that
Spotless’ financial results for the 12
months to 30 June 2015, released on 25
August 2015, were misleading and in
breach of Spotless’ continuous disclosure
The claim was brought on behalf of all
persons who acquired Spotless shares
between 25 August 2015 and 2 December
2015 (excluding related parties, bodies
corporate, associated entities and officers
or close associates of Spotless).
Downer launches takeover
bid for Spotless
Thomas Krulis has resigned as
non-executive director of vacuum
Following the announcement
the Godfreys’ board expressed its
appreciation to Krulis, who also
previously served as CEO, for his
contribution since his appointment in
In February Godfreys Group Limited
reported an underlying net profit after tax
of $2.3 million for the half-year ended
December 30, compared to $4.5 million
for the previous corresponding period.
Sales for the period were $92.4 million,
an increase of 2.8 per cent on the prior
year, which included the contribution
from The Service Company. Comparable
store sales for the half were down by 7
per cent, while operating gross margins
were down by 3.5 percentage points.
Godfreys opened four stores and closed
three during the period, totaling 223
stores across Australia and NZ.
The retailer said its strategy to move to
a majority franchised model is on track to
deliver 18 store conversions to franchise
stores for the 2017 financial year”.
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