Sealed Air (SEE) Buys TTS-Ciptec To Boost Cleaning Sevice

Specialty packaging service provider, Sealed Air Corporation (NYSE:SEE) has acquired Tampereen Teollsuussähkö Oy (TTS-Ciptec). The buyout will help to boost Sealed Air’s customers’ sustainability needs by providing improved cleaning systems. Financial terms of the transaction were not disclosed.

Headquartered in Tampere, Finland, TTS-Ciptec was founded in 1988, with its customer base located primarily in Europe and Latin America. The company optimizes Cleaning in Place systems through remote monitoring capabilities and predictive analytics services for industrial use in brewing, beverage and dairy companies.

TTS-Ciptec’s unique approach and complementary technology in patented sensing and algorithms will benefit Sealed Air’s knowledge-based services. Further, TTS-Ciptec’s exclusive technique in association with Sealed Air’s expertise in data analytics will help customers in saving time, reducing product loss and water and energy consumption.

Moreover, the buyout will improve quality, hygiene and yield of Sealed Air’s customers. The transaction will not materially impact its financial results.

Sealed Air plans to accelerate its investment in both equipment and data analytics. Its performance in 2016 will be driven by ongoing productivity improvements, further adoption of its more advanced product portfolio, and early successes with the Change the Game initiatives.

In 2015, Sealed Air acquired Intellibot Robotics LLC, in a move to expand its floor-cleaning business. The company also obtained B+ Equipment which solidifies its position in the growing e-commerce market with a solution that focuses on reducing shipping costs and increasing productivity.

However, continued slowdown in Australia and New Zealand and persistently weak economic conditions in both Brazil and Venezuela will affect Sealed Air’s growth. It also cautions that second-quarter 2016 results will be down on a year-over-year basis primarily due to formula pricing in Food Care.

Sealed Air currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Alamo Group, Inc. (NYSE:ALG) , Greif, Inc. (NYSE:GEF) and Manitex International, Inc. (NASDAQ:MNTX) . All these stocks carry a Zacks Rank #2 (Buy).