Silgan<\/a> Holdings, a supplier of sustainable rigid packaging solutions, has agreed to acquire Weener Plastics, a producer of dispensing solutions, for \u20ac838m ($908m).\u00a0<\/p>\n <\/p>\n Weener operates a global network of 19 facilities, predominantly in Europe and the Americas, and employs approximately 4,000 people.\u00a0<\/p>\n The company provides proprietary manufacturing technologies, including significant clean room capabilities.\u00a0<\/p>\n For the 12 months ending 31 May 2024, Weener reported sales of approximately \u20ac450m and adjusted earnings before interest, taxes, depreciation, and amortisation of \u20ac96m.\u00a0\u00a0<\/p>\n Silgan anticipates operational cost synergies of approximately \u20ac20m within 18 months post-acquisition, primarily through procurement savings, manufacturing efficiencies, and other operational synergies.\u00a0\u00a0<\/p>\n The acquisition is expected to be accretive to adjusted earnings per share in 2025.\u00a0<\/p>\n The transaction is subject to regulatory approvals and customary closing conditions and is set for completion in the fourth quarter (Q4) of 2024.\u00a0<\/p>\n The purchase price is subject to adjustments as detailed in the sale and purchase agreement.\u00a0\u00a0<\/p>\n Silgan plans to fund the acquisition with cash on hand and borrowings under its senior secured credit facility.\u00a0<\/p>\n Silgan president and CEO Adam Greenlee said:\u00a0\u201cThe proposed acquisition of Weener represents the continuation of our strategy to expand our global Dispensing and Specialty Closures franchise and a clear example of the effectiveness of our disciplined capital allocation model to create value for our shareholders.\u00a0<\/p>\n \u201cThe combination of Weener\u2019s innovative product offering, advanced manufacturing technologies and efficient operating footprint, strong customer relationships and presence in growing consumer markets, including personal and healthcare, complements our existing dispensing business well.\u201d\u00a0<\/p>\n He also emphasised Silgan\u2019s commitment to being the dispensing partner of choice in the market.\u00a0<\/p>\n Wells Fargo<\/a> and J.P. Morgan Securities are providing financial advisory services to Silgan for this transaction.\u00a0<\/p>\n In May this year, Silgan Holdings reported a 7% decrease in net sales<\/a> for Q1 of financial year 2024 (FY24), amounting to $1.317bn compared with $1.418bn in the same period in FY23.\u00a0<\/p>\n <\/p>\n <\/p>\n <\/p>\n![\"Email](\"https:\/\/www.packaging-gateway.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/newsletter-new.svg\")
\n <\/div>\n