Silgan purchased Albéa’s dispensing business that supplies pumps, sprayers, and foam dispensing solutions
US-based consumer goods packaging supplier Silgan has closed the acquisition of the dispensing business of packaging company Albéa in a deal worth $900m.
As per the terms of the agreement signed in January 2020, Silgan purchased Albéa’s dispensing business that supplies pumps, sprayers, and foam dispensing solutions to major consumer goods product companies within the personal care and beauty markets.
The business operates 10 manufacturing plants located across North America, Europe, South America and Asia.
In a press statement, Silgan said: “The Company funded the purchase price for this acquisition and related costs and expenses through term and revolving loan borrowings under its senior secured credit facility, including a $900 million delayed draw term loan.
“This acquisition is expected to be modestly accretive to the Company’s earnings in 2020, excluding the impact of required purchase accounting adjustments and after taking into consideration the Company’s estimate of the current negative impact caused by the coronavirus (COVID-19) crisis on the beauty and personal care markets.”
Silgan further strengthens closures franchise
The acquisition is a part of Silgan’s efforts to enhance the scope and breadth of closures franchise by bringing new products and capabilities.
Silgan earlier said that the acquisition of Albea’s dispensing business expands its position in the dispensing markets, which will include highly engineered foam pumps, fine mist pumps, lotion pumps, samplers, fragrance caps and closures for personal care and beauty products.
Silgan, which supplies sustainable rigid packaging solutions for consumer goods products, operates 110 manufacturing facilities in North and South America, Europe and Asia.
The firm provides metal and plastic closures and dispensing systems for food, beverage, health care, garden, home, personal care and beauty products as well as plastic containers for shelf-stable food and personal care products in North America.
In February 2020, Silgan Dispensing has announced the launch of two new packaging products at ADF&PCD 2020 event.
Designed using Silgan Dispensing’s Sinfonia pump, the first product is a Sinfonia Crème for skin care and colour cosmetics. The second product, Aerohead Plus, is a new addition to the company’s aerosol product portfolio. It will be manufactured in Europe.