(By Balaseshan) Sealed Air Corp. (NYSE: SEE) said it has agreed to sell its Japanese sanitation unit -- Diversey G.K. -- to the global alternative asset manager Carlyle Group LP (NASDAQ: CG) for gross proceeds of about $377 million.
Diversey G.K., also called Diversey Japan and an indirect subsidiary of Diversey Inc., is a provider of cleaning, sanitation and hygiene products and solutions, mainly to institutional customers in the Japanese market, with trailing twelve month sales as of September 30, 2012, of about $321 million.
Going forward, Diversey Japan, which will continue to run the operation under the Diversey name, will continue to strengthen its products and services to better meet its customers' various needs.
Toshiro Misumi, Executor of Diversey G.K., will assume President and Chief Executive Officer upon closing and take the helm at the newly independent Diversey Japan.
Carlyle said the equity for this investment will come from Carlyle Japan Partners II.
The price will be subject to certain purchase price adjustments. Sealed Air noted that Diversey Japan will now be accounted for as a discontinued operation as of September 30, 2012, which is expected to impact third quarter 2012 earnings per share by $0.03.
Full third quarter results and further detail regarding the transaction will be presented on Sealed Air's upcoming earnings call on November 2. The transaction is expected to be completed in the fourth quarter of 2012.
SEE closed Friday's regular session at $15.84, while CG ended at $25.82.