Clayton, Dubilier & Rice (CD&R) is in early discussions to acquire Sealed Air Corporation, the US packaging company that created Bubble Wrap, according to Bloomberg.

The private equity firm has held preliminary talks with Sealed Air to explore a possible deal. While no agreement has been reached, any buyer could consider splitting the company’s food packaging and protective packaging divisions to unlock greater value, the sources said.

Sealed Air’s shares have gained 7.5% this year, giving the Charlotte-based company a market capitalisation of about $5.35bn.

Founded in 1957, Sealed Air has grown into one of the world’s largest packaging manufacturers, with 105 production sites and 16,400 employees across 117 countries. Its products include Cryovac shrink bags, Instapak foam packaging, and medical-grade films used by food processors and healthcare suppliers.

The company generated $270m in net earnings on $5.4bn in revenue in 2024, down slightly from $339m in profit a year earlier.

A potential deal would continue CD&R’s track record of large industrial investments. The firm has been an active acquirer in the manufacturing and packaging sectors, seeking to consolidate established businesses with strong recurring revenue streams.

Both CD&R and Sealed Air declined to comment on the ongoing discussions, which remain preliminary.

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