Sealed Air (SEE) Buys Foxpak, Boosts Digital Smart Packaging

Sealed Air Corporation SEE acquired Foxpak Flexibles Ltd. (Foxpak) to expand digital smart packaging solutions offerings for leading brands across the globe.

Foxpak is the developer of digital printing on flexible packaging. This private Ireland-based packaging solutions company partners with top brands to deliver highly-decorated packaging solutions for various served markets — including pet food, food retail, seafood, and snacks.

Strong demand for automated equipment and sustainable packaging solutions are driving Sealed Air’s food and protected packaging segments’ growth. In food, the retail channel and protein exports are expected to be solid. Its protein automation pipeline continues to grow across all regions, with major food producers committing to the SEE Touchless Automation future. The company is witnessing year-over-year higher foodservice demand owing to the reopening of restaurants and other public venues. Backed by this, its fluid solutions portfolio, comprising Cryovac Barrier Bags and pouches for condiments, soups and sauces, is witnessing growth. In the protective segment, continued growth in e-commerce and fulfillment and higher demand in the industrial end markets is likely to drive performance.

Given the surging demand for recyclable materials, fiber-based solutions and automated packaging, Sealed Air’s focus on automation, digital and sustainability is likely to boost market-beating growth in its core business, enabling it to expand into new and adjacent markets. The company’s SEE automated solutions strategy is driving growth for the next phase of its Reinvent SEE business transformation. Sealed Air’s pipeline for automated equipment continues to improve. The company has set a target of more than $500 million by 2025.

Sealed Air’s Reinvent SEE Strategy, focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements, is contributing to the company’s bottom line.

Price Performance

Sealed Air’s shares have gained 49.8% in the past year compared with the industry’s growth of 12.8%.

Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

Sealed Air currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few other top-ranked stocks in the Industrial Products sector include Dover Corporation DOV, Silgan Holdings Inc. SLGN and Applied Industrial Technologies, Inc. AIT. All the stocks carry a Zacks Rank #2 at present.

Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.

Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4%. DOV’s shares have rallied around 44.5% in a year.

Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.

Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7%.

Applied Industrial Technologies reported adjusted EPS of $1.46 per share in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.

Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up by 9.4% in the past 60 days. AIT’s shares have appreciated 36% in a year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.