Sealed Air Corporation (SEE) has made a strategic investment in Highcon and its digital cutting and creasing technology, supporting and accelerating its vision and business objectives.
The scope of the strategic collaboration between the two companies extends to:
- Developing new product offerings, expansion into new segments and enabling manufacturing efficiencies by leveraging Highcon technology’
- An $8 million investment in the form of convertible debt and 15% warrants, to be converted by the fifth anniversary of the Effective Date at a price of 3.1 NIS per share; and
- Additional warrants to be granted against possible future purchases up to $20 million of Highcon’s products and services over a period of three years.
The strategic collaboration also includes the purchase of a Highcon Beam 2C system for delivery and installation in the first quarter of 2023. The in-house presence of the system will allow SEE to accelerate the testing of new designs and products, as well as the manufacturing and delivery of corrugated products to the company’s customers. In recent months, teams from Highcon and SEE have collaborated to explore the application of Highcon’s systems and technology to a range of different activities.
Highcon CEO Shlomo Nimrodi noted, ‘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.’
SEE has identified Highcon’s digital paperboard converting capabilities and its know-how around laser cutting of paperboard as supporting and accelerating its vision and business objectives.
Sergio Pupkin, senior vice president and chief growth and strategy officer at SEE, said, ‘Highcon’s technology and capabilities represent a meaningful opportunity for 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.’
Mr Nimrodi added, ‘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.’