Silgan Holdings Inc. (NYSE: SLGN) has recently completed its acquisition of Weener Plastics Holdings B.V., a prominent producer of specialized dispensing solutions for personal care, food, and healthcare products. Weener's global footprint includes 19 facilities mainly in Europe and the Americas, employing around 4,000 individuals and boasting proprietary manufacturing technologies, including significant clean room capabilities.
The acquisition was primarily funded through term and revolving loan borrowings under Silgan's senior secured credit facility, which included a €700 million incremental term loan. Silgan anticipates achieving operational cost synergies of approximately €20 million within 18 months. Furthermore, the company expects the transaction to be slightly accretive to adjusted earnings per share in 2024, with an estimated 10% accretion once fully integrated and with synergies realized.
Silgan, known for its sustainable rigid packaging solutions, reported annual net sales of approximately $6.0 billion in 2023. The company operates 124 manufacturing facilities across North and South America, Europe, and Asia. Silgan is a key global supplier of dispensing and specialty closures for various industries, including fragrance and beauty, food, beverage, personal and health care, home care, and lawn and garden products. It is also a significant supplier of metal containers in North America and Europe for pet and human food, alongside being a leading supplier of custom containers for shelf-stable food and personal care products in North America. Today the company's shares have moved 1.4% to a price of $52.45. For the full picture, make sure to review Silgan's 8-K report.
