Terms have been agreed for the purchase of the speciality films and packaging business of Dolphin Packaging (Fleets Lane, Poole, GB - Dorset 15 3BT) by New Jersey-based Sealed Air Corporation. The deal values the UK company at GBP 79m and should be completed within a matter of weeks as unanimous acceptance of the offer by Dolphin´s directors represents a stakeholding in the business of more than 55%.

Dolphin is one of the UK´s leading producers of specialty plastics packaging products for modified atmosphere applications, home meal replacement and other centrally-prepared foods. Its range includes fresh meat trays, food service items and food and fruit containers in addition to rigid containers for bulk distribution of products to food, medical and healthcare industries. In addition to its headquarters factory, it has plants in Leeds and Liverpool in the UK, in Ireland, near Dundalk, and in the Netherlands. Last year it generated operating profits of GBP 8.3m from sales of GBP 51.1m.

Commenting on the offer, Dolphin chairman Harry Evans said: “We have known Sealed Air, and in particular its Cryovac business, for a number of years and are confident that the acquisition of Dolphin is in the best interests of our customers and employees.”

Sealed Air, best known for its air cellular cushioning materials (bubble wrap) also produces PE and polyurethane foams and shrink films for protective packaging applications. In food packaging its principal products include high-performance shrink films, non-shrink laminates and complete packaging systems, all marketed under the Cryovac branding. It operates in 46 countries and had a turnover last year of USD 2,800m, which provided an operating profit of USD 452.2m.

According to Sealed Air´s William Hickey, president and ceo, “The acquisition of Dolphin would bring to Sealed Air a complementary line of products which we expect would enhance our ability to meet the needs of our customers in the UK and other parts of Europe.”

Dolphin, with its 750 employees, will form part of Sealed Air UK (Clifton House, 1 Marston House, St Neots, GB - Cambs PE19 2HN). Last year this business had an operating profit of GBP 2.4m, from sales of GBP 92.4m. Currently Dolphin says its sales are significantly ahead of last year but trading margins are lower due to large increases in raw material prices, which it is finding difficult to pass on to customers because of increased competition. Selling prices are being increased, but their effect will not be seen until the second half of the year.