An ice bagger comprises an ice maker, an ice bagging unit which includes an automatic sanitation system, and a merchandiser. The ice maker delivers particulate ice into a hopper housed within the ice bagging unit. The ice bagging unit includes a bag carrier which retrieves a bag from a bag supply and opens the bag underneath a delivery chute communicating with the hopper via an auger. A scale supports the bag during its filling to measure the weight of the ice delivered into the bag from the hopper. When the scale registers the desired amount of ice, the auger ceases to deliver ice from the hopper into the delivery chute. The ice bagging unit further includes a sealer arm and heating element wherein, after the bag is filled, the sealer arm pivots to detach the bag from the bag carrier and force both sides of the open end of the bag against the heating element. The heating element then activates to seal the bag closed. Once the bag has been closed, the scale pivots to deliver the sealed bag of ice into the merchandiser while the sealer arm raises to its original position. The above cycle then repeats to fill another bag with ice. Additionally, the ice bagger further comprises a sanitizing system which periodically activates to sanitize the hopper.