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Henkel in talks to buy Sealed Air's Diversey Care division13th of February 2017
German consumer giant Henkel is in talks to buy Sealed Air's professional cleaning division Diversey Care for a price likely to exceed $3 billion, according to the New York Post. Sealed Air paid $4.3 billion for the business in 2011.
Sealed Air announced in October it planned to spin off the Diversey Care unit, as well as its food hygiene and cleaning businesses, to shareholders. It indicated that spin-off would happen in the second half of 2017.
However sources told the New York Post that Sealed Air is also pursuing a sale of Diversey Care as part of a dual process.
"Private-equity firms want to bid for it, but Henkel is in there" and it may pay more, a source said.
"This could be a spin, but it sounds to me like a sale is even more likely," a Sealed Air analyst said.
"Valuations are pretty strong, and I think Diversey's tax basis is also pretty high so they would have limited tax leakage on a cash sale."