Silgan Holdings to acquire European White Cap metal closures business
Enters into a definitive purchase agreement with Amcor Limited for the acquisition.
24/02/06 Silgan Holdings Inc. has announced that it has entered into a definitive purchase agreement with Amcor Limited to acquire its White Cap closures business. This business is a leading supplier of an extensive range of metal closures to consumer goods packaging companies in the food and beverage industries in Europe, Asia Pacific and South America. The business, which had sales of approximately EUR 246 million (or approximately $300 million at current exchange rates) for its fiscal year ended June 30, 2005, is headquartered in Hanover, Germany and operates a total of 10 manufacturing facilities in Europe, Asia Pacific and South America serving approximately 70 countries.
The purchase price for this transaction is EUR 230 million (or approximately $280 million), on a debt-free and cash-free basis, or slightly over six times our expected run rate EBITDA for the business. The Company expects the transaction to be accretive to its 2007 earnings with additional opportunity as certain synergies and cost savings initiatives are realized. The transaction, which is expected to be financed through borrowings under the Company's senior secured credit facility or new senior subordinated notes, or a combination thereof, is expected to close during the second quarter of 2006, subject to specific closing conditions and other customary closing conditions. Under the purchase agreement, the parties could initially close on the European business, which represents approximately 87% of the total sales, and then subsequently close the other jurisdictions upon satisfaction of applicable closing conditions.
Silgan Holdings is a leading North American manufacturer of consumer goods packaging products with annual net sales of approximately $2.5 billion in 2005. Silgan operates 60 manufacturing facilities in the U.S. and Canada. In North America, Silgan is the largest supplier of metal containers for food products and a leading supplier of plastic containers for personal care products and of metal, composite and plastic vacuum closures for food and beverage products.
