WestRock and Silgan complete acquisition of dispensing systems business

10 April 2017


WestRock and Silgan complete acquisition of dispensing systems business

Silgan Holdings Inc. announced that it has completed its acquisition of the dispensing systems business of WestRock Company . 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. From now on the business will operate as Silgan Dispensing Closures.

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.

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.



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