Protective packaging supplier Sealed Air (Elmwood Park, New Jersey / USA; www.sealedair.com) has agreed to sell its rigid medical packaging business to US private equity firm Mason Wells Buyout Fund III (Milwaukee, Wisconsin; www.masonwells.com). The business was formed from three previous acquisitions: Nelipak Holdings, Alga Plastics and ATE Costa Rica and has facilities in Ireland, the Netherlands, the US and Costa Rica. CEO Jerome Peribere comments: “Our rigid medical business has a strong global position but no longer presents a strategic fit for us. By further focussing our portfolio, we can maximise our investment in new innovations which are core to our market-driven business.” He added the company remains committed to the medical packaging industry and will continue to manufacture medical and pharmaceutical films.

The sale is expected to close in the fourth quarter of 2013, subject to the usual conditions. The price will be subject to certain adjustments but Sealed Air expects to receive USD 125m from the deal. At the end of October the company announced the rigid medical packaging business would yield net sales worth an estimated USD 100m in 2013, contributing to total net sales of approximately USD 7.7 bn.

Meanwhile, the company has announced the setting up of a China head office to serve as a hub for its operations, technology, innovation and customer learning in the country as well as for South Korea, Hong Kong and Taiwan. The office, which is located in Shanghia’s Qingpu district, adds to Sealed Air’s other Asian R&D hub in India.