Sealed Air, the Bubble Wrap maker in the midst of moving its headquarters to Charlotte from New Jersey, announced Monday it’s spinning off about a third of the company. Both will remain in Charlotte.
Sealed Air will spin off Diversey Care, the cleaning products company it bought in 2011, as well as the food hygiene and cleaning business within its food care division, the manufacturer said in a statement.
Sealed Air said the move doesn’t change its decision to relocate to Charlotte, and its incentives-driven goal to add almost 1,300 jobs here. The spun-off company will lease buildings on Sealed Air’s new $58 million campus in southwest Charlotte.
Sealed Air announced in 2014 that it was moving to Charlotte, in what the Charlotte Chamber called the largest corporate headquarters relocation in the city’s history. State and local incentives totaled about $43 million for the project.
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“We will continue to relocate employees and hire new employees in 2017. Right now we’re tracking to meet our commitment in excess. The creation of two publicly traded companies is actually a positive, because it will lead to even more growth,” spokesman Ken Aurichio said.
The spun-off Diversey Care portion will be called “New Diversey,” while the remaining business will continue as an independent public company known as “New Sealed Air.” The deal is expected to be completed in the second half of 2017.
Sealed Air’s shareholders would own 100 percent of the common stock of New Diversey following completion of the spin-off, the company said.
Sealed Air said the split of the two companies will allow them to benefit from “leaner, more streamlined operating structures to enable more efficient management decision-making.” Aurichio said pressure from investors was not a factor.
“Following the spin-off, each company will be well-positioned for profitable growth through a proven business model and enhanced strategic focus, improved operating efficiencies and optimized capital allocation to enable investments in new disruptive technologies,” said Jerome Peribere, Sealed Air’s president and CEO.
Peribere will remain CEO of New Sealed Air. Illham Kadri, whom Sealed Air relocated from the Netherlands last summer, will head New Diversey. Additional members of New Diversey’s management team and board of directors will be named closer to the completion of the spinoff.