Sealed Air Completes Terms of Settlement Agreement Involving Bankruptcy Case of W. R. Grace & Co.
February 4, 2014 at 7:30 AM EST
ELMWOOD PARK, N.J.--(BUSINESS WIRE)--Feb. 4, 2014--
Sealed Air Corporation (NYSE:SEE) today announced it has completed the
material remaining conditions of the previously disclosed Settlement
agreement with the committees appointed to represent asbestos claimants
in the bankruptcy case of W. R. Grace & Co. This agreement was approved
by order of the United States Bankruptcy Court for the District of
Delaware on June 27, 2005.
Pursuant to the terms of the Settlement agreement, Cryovac, Inc., a
wholly owned subsidiary of Sealed Air, fulfilled its obligation with
payments to asbestos claims trusts in the aggregate amount of $930
million cash and 18 million shares of Sealed Air common stock.
“This is very positive news for Sealed Air, as the completion of the
settlement has been anticipated for some time and now brings finality to
a matter after more than a decade of preparation. It resolves
asbestos-related claims against Sealed Air associated with W. R. Grace &
Co.,” said Jerome A. Peribere, President & CEO of Sealed Air. “We will
no longer incur interest on the settlement, which amounted to $48
million in 2013. Additionally, we anticipate meaningful cash tax
benefits over the next several years that will provide cash that we can
use to continue to add value to our business.”
Business
Sealed Air Corporation creates a world that feels, tastes and works
better. In 2012, the Company generated revenue of approximately $7.6
billion by helping our customers achieve their sustainability goals in
the face of today’s biggest social and environmental challenges.
Our portfolio of widely recognized brands, including Cryovac® brand food
packaging solutions, Bubble Wrap® brand cushioning and Diversey™ cleaning
and hygiene solutions, ensures a safer and less wasteful food supply
chain, protects valuable goods shipped around the world, and improves
health through clean environments. Sealed Air has approximately 25,000
employees who serve customers in 175 countries. To learn more, visit www.sealedair.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by such words as
“anticipates,” “believes,” “plan,” “assumes,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans to,” “will” and similar expressions.
These statements reflect our beliefs and expectations as to future
events and trends affecting our business, our consolidated financial
position and our results of operations. Examples of these
forward-looking statements include expectations regarding our
anticipated effective income tax rate, the potential cash tax benefits
associated with the W.R. Grace settlement, potential volume, revenue and
operating growth for future periods, expectations and assumptions
associated with our restructuring programs, availability and pricing of
raw materials, success of our growth initiatives, economic conditions,
and the success of pricing actions. A variety of factors may cause
actual results to differ materially from these expectations, including
general domestic and international economic and political conditions,
changes in our raw material and energy costs, credit ratings, the
success of restructuring plans, currency translation and devaluation
effects, the competitive environment, the effects of animal and
food-related health issues, environmental matters, and regulatory
actions and legal matters. For more extensive information, see “Risk
Factors” and “Cautionary Notice Regarding Forward-Looking Statements,”
which appear in our most recent Annual Report on Form 10-K, as filed
with the Securities and Exchange Commission, and as revised and updated
by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
While we may elect to update these forward-looking statements at some
point in the future, we specifically disclaim any obligation to do so,
whether as a result of new information, future events, or otherwise.
Source: Sealed Air Corporation
Sealed Air Corporation
Investors:
Lori Chaitman, 201-703-4161
or
Media:
Ken
Aurichio, 201-703-4164