GERMANY – Silgan, a provider of Sustainable rigid packaging solutions, has agreed to acquire Weener Plastics, a producer of dispensing solutions, for €838 million (US$910 million).
Weener Plastics operates a global network of 19 facilities, predominantly in Europe and the Americas, and employs approximately 4,000 people.
The company provides proprietary manufacturing technologies, including significant clean room capabilities.
For the 12 months ending May 31, 2024, Weener reported sales of approximately €450 million (US$488.67m) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of €96 million (US$104.25m).
Silgan anticipates approximately €20 million (US$21.72m) in operational cost synergies within 18 months post-acquisition, primarily through procurement savings, manufacturing efficiencies, and other operational synergies.
The acquisition is expected to be accretive to adjusted earnings per share in 2025. The transaction is subject to regulatory approvals and customary closing conditions and is set for completion in the fourth quarter of 2024. The purchase price is subject to adjustments as detailed in the sale and purchase agreement.
Silgan plans to fund the acquisition with cash on hand and borrowings under its senior secured credit facility.
Silgan President and CEO Adam Greenlee stated, “The proposed acquisition of Weener represents the continuation of our strategy to expand our global Dispensing and Specialty Closures franchise and is a clear example of the effectiveness of our disciplined capital allocation model to create value for our shareholders.
“The combination of Weener’s innovative product offering, advanced manufacturing technologies, efficient operating footprint, strong customer relationships, and presence in growing consumer markets, including personal and healthcare, complements our existing dispensing business well.”
Greenlee also emphasized Silgan’s commitment to being the dispensing partner of choice in the market.
Financial advisory services for this transaction were provided to Silgan by Wells Fargo and J.P. Morgan Securities.
This deal comes weeks after Silgan Holdings lost its packaging facility’s operations to the Russian government.
Russian President Vladimir Putin signed a decree ordering the temporary seizure and nationalization of Silgan Holdings’ production sites.
This prominent metal packaging manufacturer owns two plants, one in the Moscow region and one in the Adygea Republic, now under the Kremlin’s state supervision.
This action follows an earlier decree signed in April, allowing the government to control any foreign business deemed necessary for state security and national interests.
The initial move under this decree involved seizing two energy firms, one headquartered in Germany and another in Finland.
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