US-based private equity company Clayton, Dubilier & Rice (CD&R) is considering the potential acquisition of Sealed Air, the US packaging manufacturer known for bubble wrap.

CD&R has held discussions with the North Carolina-based group to express its interest in a possible deal.

Deliberations are ongoing and may not result in a transaction, according to a report first published by The Wall Street Journal.

Any buyer could consider breaking up Sealed Air, which operates food and protective packaging divisions, according to reports from Bloomberg.

Sealed Air is valued at $5.35bn.

The company traces its origins to 1957, when engineers Alfred W Fielding and Marc Chavannes developed a laminated plastic with air bubbles that evolved into bubble wrap.

Today, Sealed Air manufactures Cryovac shrink bags, Instapak foam packaging, medical films, bagging machinery and food packaging equipment, employing 16,400 people across 105 manufacturing facilities in 117 countries and territories.

In the third quarter of 2025, Sealed Air reported improved net earnings and earnings per share EPS) from better operating leverage and favorable resolution of historical tax matters.

Adjusted earnings before taxation, interest, depreciation and amortization and EPS rose 4% and 10% respectively, with protective volume stabilization and transformation initiatives supporting margin expansion.

Food sales were relatively flat, with strength in food service offset by weakness in industrial and retail.