The sale includes Sealed Air’s five manufacturing facilities in Indianapolis, Indiana; Paxinos and Reading, Pennsylvania; Rockingham, North Carolina; and Grenada, Mississippi and will produce absorbent pads and expanded polystyrene (EPS) foam trays.
Former Coveris chief joins as Novipax CEO
The business saw $214m sales in 2014, and serves food processors, supermarkets, and food packaging distributors.
Former president of Coveris, North America food and consumer packaging division, Bob Larson became CEO of Novipax on April 1. Its HQ is based in Chicago, Illinois, and it has 760 employees.
“Essentially, we are the same organization - only better,” he said.
“Now, as a stand-alone entity, Novipax has a singular focus on polystyrene trays and absorbent pads and we will continue to improve this business.
“We see great potential for business growth and success and we will continue to add customers, new products and geographies.
“Today, the company has a new name and vision, and we are all excited to be a part of it. We are looking forward to building upon past successes and writing the next successful chapter for this business.”
'Consumers prefer freshly packaged products in a polystyrene foam tray'
According to Larson, polystyrene will remain the resin of choice for trays used in the meat, poultry and seafood packaging industry because consumers prefer the appearance of a freshly packaged product presented in an industry-standard polystyrene foam tray.
“We were attracted to Sealed Air’s TAP business because it was well known in the protein packaging sector,” he added.
“Atlas Holdings, the company that owns Novipax has extensive experience in packaging for various industries, including consumer end markets. The acquisition represented an opportunity for Atlas to further invest in and diversify its holdings in the packaging category.
“Our polystyrene trays offer high oxygen and moisture barriers, providing products with a longer shelf life and a better appearance. We offer a broad portfolio of EPS trays in a variety of colors, shapes and thicknesses, including the only EPS barrier tray currently on the market.”
Larson said Don Eldert, formerly executive VP and CFO, AGI-Shorewood Global, an Atlas business focused on specialty printing and packaging has joined the team as executive VP and CFO, supported by a Board of Directors led by Ron Leach, former CEO, Tegrant Corporation.
Atlas Holdings
“Atlas has a proven history of bringing financial, operating and transactional expertise to its investments - with the demonstrated ability to address the many unique challenges of complex corporate carve-out situations,” he added.
“The company works closely with management teams to successfully transition companies without disruption to employees, customers or suppliers.
“Most of our customers have worked with us for more than 20 years. Right now our focus is on meat, poultry and seafood.”
Jerome Peribere, president/CEO, Sealed Air, said the decision to divest its foam trays and absorbent pads business is part of restructuring its portfolio management.
"As we increase our focus on innovation and differentiation in the flexible packaging industry, the decision to divest trays and pads aligns with our overall strategy and we are confident Novipax is the right strategic buyer to further expand and grow this business," he added.