Sealed Air announces new business unit structure
Nov. 4, 2011
by Meat&Poultry Staff
ELMWOOD PARK, NJ – Sealed Air Corporation has announced its next step in integrating the Diversey business, including establishing new business units in 2012. It will be organized into three business units focused on food safety and security, facility hygiene and product protection.
“This market-oriented organization will help maximize the opportunities and value creation we expect to generate from the Diversey acquisition," said William Hickey, president and chief executive officer, Sealed Air.
Benefits of the organizational design, Hickey said, will simplify its organizational structure and reduce complexity; develop management capabilities for the future; leverage economies of scale in key market sectors and geographies; focus and accelerate growth in developing markets across all businesses; maximize shared customer and development opportunities in Food & Beverage; optimize benefits in purchasing, manufacturing and logistics; accelerate realization of cost synergies; and exceed initial synergy estimates.
The new design will consist of three global business units and a developing markets group to ensure accelerated growth in the key developing regions. Plans are to implement this new structure in 2012 and it will replace its current six-business unit structure and Diversey's four region-based structure. The new business units will be led by leaders from Sealed Air and Diversey.
The business units and leaders in the new organization will be:
- Food & Beverage combines Sealed Air's Food Packaging and Food Solutions businesses with Diversey's Food & Beverage applications. Combined, this new segment will leverage expertise in food science and microbiology to deliver solutions that protect and enhance the food and beverage supply chain to ensure food and beverages are prepared and processed in a safe and efficient environment, will offer extended product shelf-life, reduced waste and provide value-added convenience benefits, the company said. This business is expected to represent approximately 45 percent of Sealed Air revenue and will be led by Karl Deily, who has more than 30 years at Sealed Air. He currently leads Sealed Air's global Food Packaging business.
- Institutional & Laundry will consist of Diversey's building care, laundry and infection control solutions for Building Service Contractors/Facility Management, Retail, Food Service, Hospitality and Health Care sectors.
- Protective Packaging will combine Sealed Air's Protective Packaging, Shrink Packaging and Specialty Materials businesses to provide customers with a broad portfolio of protective packaging systems across a range of applications and industries. It is expected to represent approximately 20 percent of Sealed Air revenue and will be led by Ryan Flanagan, an experienced Sealed Air leader with more than a 20-year background serving in both the Protective Packaging and Food Packaging businesses. He currently leads Sealed Air's global Protective Packaging business.
A Developing Markets group will be created to address the portfolio needs and solution requirements in Africa, Asia, India, the Middle East and Turkey. This group will support the global businesses in this part of the world and will be led by Yagmur Sagnak, a Diversey leader with extensive experience in emerging markets.
A small "Other" category will include the company’s Medical Applications business and New Ventures.
As part of this transition, Ed Lonergan, CEO of the legacy Diversey organization, has decided to leave the company to pursue other opportunities. Ed has agreed to work with Sealed Air in a consulting role through the next six months to ensure a smooth transition of the integration process. Norman Clubb, Diversey's chief financial officer, is retiring prior to the end of 2011.