SADDLE BROOK, NJ, and MARKLEVILLE, Ind., May 30, 2000 (PRIMEZONE) -- Sealed Air Corporation (NYSE:SEE) and Reflectix, Inc. announced today that they have entered into an agreement and plan of merger providing for the acquisition of Reflectix by Sealed Air. The merger agreement provides for the shareholders of Reflectix to receive $1.05 in cash for each Reflectix common share held, including their outstanding share purchase rights. Based on the currently outstanding shares of Reflectix's common stock, the merger has a value of approximately $6.1 million.
Stephen C. Painter, the President and principal shareholder of Reflectix, the directors of Reflectix and certain other shareholders have agreed to vote their shares of Reflectix common stock, constituting approximately 42% of the outstanding shares, in favor of the merger. The board of directors of Reflectix has recommended approval of the merger and redeemed Reflectix's outstanding share purchase rights. Reflectix expects to hold a special meeting of its shareholders on the merger early in the third quarter. The consummation of the merger is subject to the approval of Reflectix's shareholders and other customary conditions and is expected to close during the third quarter.
Commenting on the merger agreement, Mr. Painter said, "We are very excited about the acquisition. We believe that Sealed Air represents an excellent strategic partner for Reflectix and will further reinforce our leadership position in the manufacture and sale of foil-faced air cellular insulation."
Commenting on the transaction, William V. Hickey, President and Chief Executive Officer of Sealed Air, stated, "The acquisition of Reflectix offers us the opportunity to increase our participation in the manufacture and sale of reflective insulation products that utilize our air cellular technology and is consistent with our strategy of growth through selective acquisitions."
Reflectix, Inc., headquartered in Markleville, Indiana, manufactures and markets foil-faced air cellular insulation. For more information on Reflectix, Inc., and its products, please visit its website at http://www.reflectixinc.com.
Sealed Air is engaged primarily in the manufacture and sale of a complementary line of food, protective and specialty packaging materials and systems. To view Sealed Air's latest financial news online via the World Wide Web, visit http://www.cfonews.com/see.