Silgan Holdings Inc. (Nasdaq: SLGN), a leading supplier of rigid
packaging for shelf-stable food and other consumer goods products,
announced today that it has entered into a definitive agreement to
purchase Portola Packaging, Inc., a leading manufacturer of plastic
closures. This business, with sales of approximately $200 million in
2012, operates eight facilities in North America and Europe.
“We believe that the acquisition of Portola broadens our global closure
franchise,” said Bob Lewis, Executive Vice President and Chief Financial
Officer. “Portola has a strong reputation as an innovator in closure
design and operational leadership. As a result, we believe this
acquisition will be highly synergistic with our existing closure
business, while providing a broader platform to service our customers’
market needs. In addition, we are excited about the opportunity to
expand our relatively small European plastic closure presence through
Portola’s manufacturing facilities in the United Kingdom and Czech
Republic,” concluded Mr. Lewis.
The purchase price for this transaction is $266 million, and the
acquisition is expected to be slightly accretive to earnings initially,
excluding the impact of the required purchase accounting write-up of
inventory, becoming more accretive as synergies are phased in over the
next eighteen months following the closing. The transaction is expected
to close as early as September 2013, subject to certain customary
conditions and regulatory approvals, and Silgan expects to fund the
purchase price for this acquisition from a combination of cash on hand
and borrowings under the Company’s senior secured credit facility.
Silgan Holdings is a leading supplier of rigid packaging for
shelf-stable food and other consumer goods products with annual net
sales of approximately $3.6 billion in 2012. Silgan operates 81
manufacturing facilities in North and South America, Europe and Asia.
Silgan is a leading supplier of metal containers in North America and
Europe, and a leading worldwide supplier of metal, composite and plastic
vacuum closures for food and beverage products. In addition, Silgan 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. 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 2012 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.
Copyright Business Wire 2013