By Cameron Chai
Silgan Holdings, a provider of rigid packaging solutions for consumer goods products, has announced that it has completed the acquisition of plastic thermoformed food business belonging to Rexam for a price of $248.1 million.
The plastic thermoformed food business produces trays, barrier bowls and non-barrier bowls for the shelf-stable food markets. For 2012, the revenues are projected to be $100 million. Following the acquisition, the business will function as Silgan Plastic Food Containers, and it will be considered as a part of Silgan’s plastic container business.
The funds for the acquisition were derived from the cash on hand. The $248.1 million included the preliminary post-closing adjustments. The plastic thermoformed food business is expected to be neutral to 2012 earnings. This is due to the accounting requirements that need initial inventory write-up. However, in 2013, the plastic thermoformed food business is anticipated to be accretive to earnings, modestly.
In 2011, Silgan Holdings had reported annual net sales of around $3.5 billion. The company is a global supplier of composite, plastic and metal vacuum closures for food and beverage products. Silgan has 82 manufacturing facilities across North and South America, Asia and Europe. In North America, it is a major supplier of plastic containers required for personal care and food products. In Europe and North America, Silgan is a major provider of metal containers.