Listed as SEE on the New York Stock Exchange (NYSE) and with sales of $5.5bn in 2021, Sealed Air Corporation said it had identified that Highcon’s digital paperboard converting capabilities and “unequalled knowhow” around the laser cutting of paperboard “can support and accelerate their vision and business objectives”.
The scope of the strategic collaboration announced today (6 December) includes the development of new product offerings, expansion into new segments, and enabling manufacturing efficiencies by leveraging Highcon technology.
The investment in the form of convertible debt and 15% warrants is to be converted by the fifth anniversary of the effective date at a price of 3.1 NIS [New Israeli Shekel] per share.
The collaboration also includes additional warrants to be granted against possible future purchases up to $20m of Highcon’s products and services over a period of three years.
Furthermore, it includes the purchasing of a Highcon Beam 2C system for delivery and installation in Q1 2023. SEE said having the system in-house will enable it to accelerate the testing of new designs and products, as well as the manufacturing and delivery of corrugated products to the company’s customers.
“Over the past months, the SEE team has been really impressed with the talent at Highcon and the company’s culture. Highcon’s technology and capabilities represent a meaningful opportunity for SEE,” said Sergio Pupkin, SVP and chief growth and strategy officer at SEE.
“Highcon’s sustainability value proposition aligns with and can help us advance our vision and plans. The roadmap we are developing together is exciting, and our investment in Highcon is a natural first step in this context.”
Highcon CEO Shlomo Nimrodi added: “SEE is taking Highcon’s technology to places that were beyond the way that we typically defined our market opportunity. Growing that opportunity, entering new application spaces, and working together with a world class partner is very exciting.
“It’s particularly gratifying to see how SEE reacted to the talent and passions of the Highcon team, and their recognition of the strategic value of our technology. I’m confident that it’s just the beginning as we prove our value to SEE to enable further expansion of our relationship.
“I’m proud of what we’ve built so far at Highcon, and with this strategic partnership, we can move farther and faster. We are certainly expecting that this collaboration will have positive impact on the company’s existing business.”
Earlier this year Highcon raised $18.5m by means of a private share placement. The company floated on the Tel Aviv Stock Exchange (TASE) at the end of 2020. The IPO was over-subscribed, and valued Highcon at $165m after the offering, with the business raising $45m.
Sealed Air brands include Bubble Wrap, Cryovac and Autobag. Its product range spans flexible films, corrugated, paper, foams and plant-based materials.
