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$SEE said it is implementing a price increase of 2.5-5% for the majority of its Food Care division's products in Europe, Middle East and Africa with the exception of Switzerland and the United Kingdom who received price increases earlier in the year. The increase will be effective Jan. 1, 2018.
$SEE, which completed the sale of its Diversey Care division and the food hygiene and cleaning business (within Food Care division) to Bain Capital on Sept, reported a 2% YoY drop in net earnings (from continuing operations) to $62MM for 3Q17. Including the gain on sale, $SEE’s net income attributable to common shareholders stood at $787.4MM.
$SEE said William G. Stiehl, the current Chief Accounting Officer and Controller, will assume the role of Acting Chief Financial Officer. In this new role, he will succeed the current Senior Vice President and Chief Financial Officer Carol P. Lowe, who will depart the Company on October 31, 2017.
$SEE will acquire Fagerdala Singapore Pte Ltd., for approx. $100MM in cash. The sale is expected to close in October, 2017. Fagerdala is a manufacturer and fabricator of polyethylene foam with 14 manufacturing facilities and the company generated $80MM in sales in 2016.
$SEE CEO and President Jerome Peribere will retire at the end of December 2017. The Board simultaneously elected Edward (Ted) Doheny II as COO and CEO-Designate, as well as a Director of the company effective as of Sept 18, 2017. Doheny will assume the role of CEO and President, effective Jan 1, 2018.
$SEE expects 2017 adjusted EPS of about $1.70 and assumes an adjusted tax rate of 28% and an estimated 196MM diluted shares outstanding, which is in line with diluted shares outstanding in 1Q17. $SEE sees 2017 free cash flow of about $390MM, including capital expenditures of about $175MM and cash restructuring payments of about $50MM.
$SEE expects 2017 adjusted EBITDA of about $825MM, as compared to $808MM for 2016. This outlook assumes $25MM of costs that were previously allocated to Diversey that were not included in earnings from discontinued operations. Currency is expected to have a negative impact of about $5MM on Adjusted EBITDA in 2017.
$SEE expects 2017 net sales of about $4.3Bil, as compared to $4.2Bil for the full year 2016. This sales performance is based on an expected 3% constant dollar sales growth in Food Care and 3-4% constant dollar sales growth in Product Care. Currency is expected to have a negative impact of $35MM on net sales in 2017.
$SEE slipped to a loss in 1Q17 from a profit last year, due to unfavorable impact of tax expense from pending sale of Diversey to Bain Capital Private Equity. Net loss was $43.2MM or $0.22 per share compared to a profit of $102.4MM or $0.51 per share last year. Sales grew to $1.03Bil from $1.01Bil. Adjusted EPS increased to $0.43 from $0.42.
$SEE agreed to sell its Diversey Care division and the food hygiene and cleaning business within its Food Care division to Bain Capital Private Equity for about $3.2Bil. $SEE's BoD authorized a rise of share repurchase program by additional $1.5Bil of common stock. The sale of New Diversey is expected to close in 2H17.