Sealed Air's Diversey Divestiture Has Strategic Value, Appears Value Neutral; Maintaining $44 FVE
Sealed Air has announced the sale of its Diversey Care business to Bain Capital for about $3.2 billion, receiving roughly $2.5 billion in cash. Although details will be limited until the first quarter is wrapped up, we estimate that Sealed Air is selling off roughly $380 million in adjusted EBITDA, implying around a 8.5 times trailing adjusted EBITDA multiple. We are maintaining our $44 fair value estimate and narrow moat rating.Although the price strikes us as slightly low for Diversey Care, i...
Sealed Air is a global provider of packaging solutions for the food, e-Commerce, electronics and industrial markets. The company serves an array of end markets including food and beverage processing, food service, retail, commercial and consumer applications, by providing food safety and security, product protection and equipment. The company's segments include: Food Care, which serves perishable food processors, predominantly in chilled, smoked and processed meat, poultry and dairy-solid markets worldwide, and maintains positions in target applications; and Product Care, in which its solutions are designed to protect goods in shipping.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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