Packaging materials supplier Sealed Air has signed a definitive agreement for the sale of its rigid medical packaging business to Mason Wells Buyout Fund III, a private equity firm, for $125m.

Sealed Air's rigid medical packaging business comprises three former acquisitions including Nelipak, Alga Plastics and ATE Costa Rica along with the plants in Ireland, the Netherlands, the US and Costa Rica.

Sealed Air president and chief executive officer Jerome Peribere said the transaction is another step in the company's approach to portfolio management.

"Our rigid medical business has a strong global position but no longer presents a strategic fit for us. By further focusing our portfolio, we can maximize our investment in new innovations which are core to our market-driven business," Peribere added.

Sealed Air, which will continue to manufacture medical and pharmaceutical films, hopes to complete the trasaction in the fourth quarter of 2013.

The transaction is subject to customary closing conditions, the company said.