Feb 20 2008
Silgan Holdings Inc., a leading supplier of consumer goods packaging products, announced today that it has entered into a definitive purchase agreement with Grup Vemsa 1857, S.L. to acquire substantially all of the assets of its metal vacuum closures business which operates under the names Vem de Tapas Metalicas in Spain and Vac Vem in China. The business, which had sales of approximately €20.0 million (or approximately US $28.7 million at current exchange rates) for the latest twelve months, is headquartered in Torello, Spain and has manufacturing operations in Torello, Spain and Dongguan, China.
The Company expects to continue the manufacturing operations in Torello, Spain and will move the assets of the Chinese operation into its existing facility in China. The transaction is expected to close during the first quarter of 2008, subject to specified closing conditions. The aggregate purchase price for the assets is €6.8 million (or approximately US $10 million at current exchange rates), and the transaction is expected to be neutral to earnings in 2008.
“We believe Vem and VacVem represent an excellent fit with our closures business,” said Bob Lewis, Silgan’s Executive Vice President and Chief Financial Officer. “This acquisition represents another step toward consolidating the international vacuum closure market. By combining these businesses, we have strengthened our competitive position in the growing Southern European and Asian markets,” Mr. Lewis concluded.