The manufacturer of consumer and industrial packaging products,
Sealed Air Corporation
) has acquired the assets of Virox Technologies which includes its
Accel brand, its healthcare businesses and existing customer
relationships in the U.S. and Canada. Financial terms of the
transaction were not disclosed.
Headquartered in Ontario, Canada, Virox mainly focuses on the use
of Hydrogen Peroxide based products. Virox is dedicated to the
development, optimization and adaptation of antimicrobial
technology which helps in infection control.
Virox's patented technology and Professional and Technical Services
(PTS) model will help in the expansion of germicidal technology and
its successful application in the cleaning and disinfecting arena.
With an extended research work, Virox developed Accelerated
Hydrogen Peroxide (AHP) technology, one of the major proprietary
technologies. AHP is a patented, synergistic blend of safe
ingredients. After mixing with low levels of hydrogen peroxide,
these ingredients increase disinfecting and cleaning abilities. It
also provides the exceptional benefits of speed of germicidal and
Sealed Air is already connected to Virox through its Diversey Care
business which provides integrated system solutions for facility
hygiene, food safety and security and infection control.
Virox's PTS model after combining with Diversey Care's sales
coverage, application expertise and global distribution will
facilitate the expansion of AHP- based solutions in the Oxivir
brand worldwide. The acquisition will also enhance Diversey Care's
marketing of AHP technology to the broader institutional markets
like Education, Government, Facility Management, Retail and Food
The buyout will help Diversey Care to gain leadership position in
the U.S. and Canada as infection prevention resource to healthcare
professionals. However, the transaction will not have immediate
impact on consolidated financial position in the near term.
The acquisition is an important step for Sealed Air's growth in the
health care market. The outlook for growth of the global health
care sector over the next few years is generally positive. Emerging
markets are expected to see spending increase, due to population
growth, increasing consumer wealth, and government programs to
expand access to health care.
In the U.S. growth in the health care market will be driven by
expanded access to health insurance coverage through the Affordable
Care Act (ACA or Obamacare) and Medicaid. However, there remain
challenges regarding ACA implementation, including the troubled
rollout of the federally operated health insurance exchange.
Going forward, Sealed Air will benefit from cost savings from its
ongoing Integration & Optimization Program as well as its
restructuring plan. However, economic uncertainty, unfavorable
foreign currency translation and volatility in raw material prices
will continue to affect its results in 2014.
Elmwood Park, NJ-based Sealed Air is a major specialty packaging
service provider to a diverse range of end markets. The company
operates in the United States and in 50 other countries, producing
packaging and performance-based materials, and equipment systems
serving food, medical, industrial and consumer applications.
Sealed Air carries a Zacks Rank #1 (Strong Buy).
Some favorably ranked stocks in the same industry include
Graphic Packaging Holding Co.
Sonoco Products Co.
). All these carry a Zacks Rank #2 (Buy).
(We are reissuing this article to correct a mistake. The
original article, issued earlier today, July 3, 2014, should no
longer be relied upon.)
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SEALED AIR CORP (SEE): Free Stock Analysis
GRAPHIC PKG HLD (GPK): Free Stock Analysis
MEADWESTVACO CP (MWV): Free Stock Analysis
SONOCO PRODUCTS (SON): Free Stock Analysis
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