Silgan Completes Acquisition of Dispensing Systems Business
April 06 2017 - 4:15PM
Business Wire
Silgan Holdings Inc. (Nasdaq:SLGN), a leading supplier of rigid
packaging for consumer goods products, announced today that it has
completed its acquisition of the dispensing systems business of
WestRock Company (NYSE:WRK). This business is a leading global
supplier of highly engineered triggers, pumps, sprayers and
dispensing closure solutions to major branded consumer goods
product companies in the home, health and beauty markets. It
operates a global network of 13 plants across North America,
Europe, South America and Asia. This business generated sales of
approximately $570 million in 2016.
The purchase price for this acquisition was $1.025 billion,
subject to adjustments outlined in the purchase agreement for this
acquisition. The Company funded the purchase price for this
acquisition through term and revolving loan borrowings under its
senior secured credit facility, including a $800 million delayed
draw term loan.
This acquisition is expected to be accretive to the Company’s
earnings, excluding the impact of the required purchase accounting
adjustments. With this acquisition, Silgan expects to realize
operational cost synergies of $15 million within 24 months,
primarily through reductions in general and administrative
expenses, procurement savings and manufacturing efficiencies. As a
result, this acquisition will become more accretive as synergies
are phased in over the next 24 months. Silgan will update its
earnings guidance for the full year 2017 for this acquisition and
its recent debt financing transactions when it announces its
earnings results for the first quarter of 2017 on April 26,
2017.
Silgan is a leading supplier of rigid packaging for consumer
goods products with annual net sales of approximately $3.6 billion
in 2016. Silgan operates 100 manufacturing facilities in North and
South America, Europe and Asia. The Company is a leading supplier
of metal containers in North America and Europe for food and
general line products. The Company is also a leading worldwide
supplier of metal and plastic closures and dispensing systems for
food, beverage, health care, garden, home and beauty products. In
addition, the Company is a leading supplier of plastic containers
for shelf-stable food and personal care products in North
America.
Statements included in this press release which are not
historical facts are forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and the Securities Exchange Act of 1934, as
amended. Such forward-looking statements are made based upon
management’s expectations and beliefs concerning future events
impacting the Company and therefore involve a number of
uncertainties and risks, including, but not limited to, those
described in the Company’s Annual Report on Form 10-K for 2016 and
other filings with the Securities and Exchange Commission.
Therefore, the actual results of operations or financial condition
of the Company could differ materially from those expressed or
implied in such forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170406006217/en/
Silgan Holdings Inc.Robert B. Lewis, 203-406-3160
Silgan (NASDAQ:SLGN)
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